Both the Dow Jones and S&P 500 finished the week at record highs, adding 0.7% each on Friday, taking the weekly gains to 2.7% and 1.2%, respectively.
Jobs data disappoints, yields fall
The most important news was a far weaker than expected number of jobs gained during the month, 266,000 versus 1 million expected, which immediately sent bond yields lower.
As we have seen recently, weaker economic data tends to push back expectations that the Federal Reserve will increase interest rates, thereby supporting ever-higher market valuations.
Featured video: Modern Monetary Theory (MMT) explained
The Nasdaq was a key beneficiary, reversing some recent losses and adding 0.9% on Friday as stay-at-home winners like Alphabet (NASDAQ: GOOGL) and Apple (NASDAQ: AAPL) rallied to finish the week.
However, the tech sector ultimately finished 1.5% lower over the five days as slowing growth rates add to concerns.
Gold benefits
Gold bullion has been a beneficiary of lower rates given the risk-free alternative offers little in the way of income, with the gold price now over USD$1,800 and AUD$2,300, respectively.
Dropbox delivers earnings beat
Digitalisation winner Dropbox (NASDAQ: DBX) was the biggest report on Friday, suggesting revenue had increased 12% to US$511 million, ahead of guidance, and projecting further growth in the final quarter.
US stock market movers
Here’s how popular US stocks closed out the week on Friday:
- Roku (NASDAQ: ROKU) up 11.6%
- Trade Desk (NASDAQ: TTD) up 8.0%
- Square (NASDAQ: SQ) up 4.2%
- Facebook (NASDAQ: FB) down 0.3%
- Amazon (NASDAQ: AMZN) down 0.5%
- Appian (NASDAQ: APPN) down 10.8%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is heading for a flat open on Monday according to the latest ASX futures. To get up to speed, check out Rask Media’s ASX 200 morning report.