In a substantial reverse of fortunes following a significant sell-off in the last session, the stock market saw an impressive resurgence during Friday's trading. All of the principal averages made substantial gains, largely making up for the steep losses seen the previous Thursday.
Although the key averages ended the day some way off their session highs, they finished firmly in positive figures. The Nasdaq saw a surge of 199.44 points or a 1.2 percent rise to 16,248.52, the S&P 500 jumped 57.13 points or an increase of 1.1 percent to 5,204.34, and the Dow advanced by 307.06 points or a lift of 0.8 percent to reach 38,904.04.
Despite the day's bounce back, the key averages all fell over the week. The Dow dropped by 2.3 percent, the S&P 500 fell by 1.0 percent, and the Nasdaq decreased by 0.8 percent.
Friday's rebound was seen as traders taking advantage of the opportunity to acquire stocks at lower rates, following the previous Thursday's steep drop which brought the Dow to its lowest closing level for a month. There was also a positive reaction to a key report by the Labor Department showing the employment figures for March significantly exceeded expectations.
The data showed non-farm payroll employment spiked by 303,000 jobs in March, following a surge of a revised downward 270,000 jobs in February. Economists had previously forecast an increase of 200,000 jobs, compared with the 275,000 jobs reported for the earlier month.
The unemployment rate for March was reported to be 3.8 percent, down from February's 3.9 percent. Economists had predicted the rate to remain unchanged.
Even though the stronger than expected jobs growth may have amplified recent concerns about future interest rate trends, there was still a sustained slowdown in the year-on-year rate of wage growth.
In sector news, gold stocks saw a significant rise following a pullback on the previous Thursday, resulting in the NYSE Arca Gold Bugs Index going up 3.3 percent, to its highest close in over ten months.
Retail stocks, in addition to software, semiconductor, and housing stocks, also benefited from substantial gains on the day.
In international markets, most Asia-Pacific stock markets traded lower on Friday. The Nikkei 225 Index in Japan fell by 2.0 percent, while the Kospi in South Korea dropped by 1.0 percent. Similarly, major European markets also declined, with the UK's FTSE 100 Index sliding by 0.8 percent, and both the French CAC 40 Index and the German DAX Index dropping by 1.1 percent and 1.2 percent respectively.
In the bond market, treasuries made some gains following an early sell-off but remained firmly in the red. The yield on the ten-year note increased 6.9 basis points to 4.378 percent.
Looking towards the week ahead, inflation data will regain the limelight as the Labor Department is set to release reports on consumer and producer price inflation for March.
