The stock market got a big boost today from a jobs report that showed a gain, but remained weak enough not to trigger an interest rate hike. As a result, the Dow Jones Industrial average jumped 1.5 percent to 18,189 while the S&P 500 was trading up 1.3 percent to 2,115.
In the retail sector most of the issues were advancing between 0.5 and 2 percent. Target Corp. was up 1.2 percent to $81.03 while Wal-Mart Stores Inc. gained 0.8 percent to $78.64.
Regarding a move by the Fed, the odds of an interest-rate increase in December are 55 percent, according to CME Group Inc. calculations of fed funds futures prices. The odds of a January 2016 hike are 71 percent.
“You’re feeling a big sigh of relief in the capital markets,” Michael Arone, the Boston-based chief investment strategist at State Street Global Advisors’ U.S. Intermediary Business, said by phone. The firm oversees $2.4 trillion. “The jobs report is not indicating the economy is overheating and it’s certainly not indicating the economic environment is further on the decline.”
The S&P 500’s early advance Friday erased a loss for the week that was spurred by concern the economy was slowing as the Fed considers raising rates. The Treasury price gains softened losses rung up during the past two weeks amid a global selloff in fixed-income securities. Ten-year yields touched 2.31 percent Thursday, the highest since Dec. 8. After a nine-month rally, the dollar has slumped since the middle of April. It added 0.4 percent versus the euro to $1.1225 on Friday.