NEW YORK- Wall Street and a gauge of global equity markets rose as investors cheered signs of economic strength in a report that showed faster-than-expected US jobs growth, data that initially stoked inflation concerns.
The session was marked by frantic trading across the globe. Asian markets dropped overnight.
MSCI’s all-country index was on its longest losing streak in six months before clawing back.
All Wall Street’s main indexes closed higher, bouncing back from early losses. Investors were spooked this week by rising interest rates, which offset optimism about an economic rebound. Microsoft rallied 2.2 percent, the biggest boost for the S&P 500.
“The market is consolidating itself around what is likely to be some pretty healthy robust economic growth and inflation-related readings out of the economy for the balance of 2021,” said Jeff MacDonald, Head of Fixed-Income Strategies, Fiduciary Trust International in New York.
The Dow Jones Industrial Average rose 572.16 points, or 1.85 percent, to 31,496.3, the S&P 500 gained 73.47 points, or 1.95 percent, to 3,841.94 and the Nasdaq Composite added 196.68 points, or 1.55 percent, to 12,920.15.
The pan-European STOXX 600 index lost 0.78 percent and MSCI’s gauge of stocks across the globe gained 0.63 percent.
Emerging market stocks lost 0.52 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.8 percent lower, while Japan’s Nikkei lost 0.23 percent.
The US economy created more jobs than expected in February as new COVID-19 cases fell and additional pandemic relief money boosted hiring at restaurants, putting the labor market recovery on firmer footing.
Still, it will probably take several years for the economy to heal from deep scars inflicted by the pandemic, now in its second year.
The market remained volatile as it was on Thursday when Federal Reserve Chairman Jerome Powell showed little alarm about a rise in bond yields.
Top Federal Reserve officials backed that message. “(W)e are not seeing much movement in real yields” but rather an increase in what bond investors are demanding, Minneapolis Federal Reserve Bank President Neel Kashkari noted.