S&P 500 briefly tops record 6,100 as strong jobs report fails to dim rate-cut bets

The S&P 500 briefly topped 6,100 for the first ever Friday after data showing a larger-than-expected rebound in payrolls in November failed to knock investor expectations for the Federal Reserve to cut rates later this month.

At 1:17 p.m. ET (18:17 GMT), the Dow Jones Industrial Average rose 54 points, or 0.1%, the S&P 500 index climbed 0.3%, and had earlier topped 6,100 for the first time ever. While the NASDAQ Composite gained 0.8% also clinching a record high. 

 Nonfarm payrolls rise, but data mixed overall

Nonfarm payrolls increased by 227,000 jobs last month, above the expected 202,000, after rising an upwardly revised 36,000 in October as the labor market reeled from Hurricanes Helene and Milton as well as a big strike at Boeing (NYSE:BA ) factories in the West Coast. 

Economists, however, pointed to weakness in the data as the household survey showed 355,00 decline in household employment in November following a 368,000 decline in October.

"The household survey was weak," Macquarie said Friday. "The unemployment rate rose on an unrounded basis from 4.14% to 4.25% as household employment contracted."

The overall unemployment rate  came in at 4.2%, matching expectations, and beating the prior month's 4.1% rate. Average hourly earnings  came in at 0.4%, unchanged from October and above the 0.3% expected.

"Today's result should keep the Fed on course for a 25 bps rate cut on 18-December, " it added. Positive corporate earnings continue 

On the corporate side, a number of companies released quarterly earnings that were well received on Wall Street.

Ulta Beauty (NASDAQ:ULTA ) stock rose 10% after the cosmetics retailer raised its annual profit forecast, signaling a revival in demand for perfumes and makeup during the holiday shopping season.

Lululemon Athletica (NASDAQ:LULU ) stock climbed 18% after the sportswear maker increased its full-year forecasts, betting on resilient demand for its athletic wear in the U.S. during the holiday shopping season and continued strength in its international business.

Gitlab (NASDAQ:GTLB ) stock rose 4% after the software company reported fiscal third-quarter results and guidance that topped expectations and announced a new CEO.

DocuSign (NASDAQ:DOCU ) stock climbed over 27% after the electronic signature company raised its 2025 revenue forecast, after a strong third-quarter earnings report.

(Peter Nurse, Ambar Warrick contributed to this article.)

Source: Investing.com