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BUSINESS Saturday 10 March 2018
A25

US stocks soar on strong jobs report; inflation fears ease

By MARLEY JAY The S&P 500 is still 3 percent
AP Markets Writer beneath its latest record
NEW YORK (AP) — Wall high close, which came on
Street got exactly what it Jan. 26. None of the other
wanted from Friday's jobs major S&P sectors have re-
report: solid hiring, moder- covered all of their Febru-
ate wage growth and con- ary losses, as technology
tinued low unemployment. has.
Investors sent stocks sharply Bond prices dropped. The
higher, particularly their re- yield on the 10-year Trea-
cent favorites, technology sury note rose to 2.90 per-
companies. cent from 2.85 percent.
U.S. employers added Banks advanced, but high-
313,000 jobs in February, dividend stocks like utilities
more than forecast, and and phone companies
wages didn't rise as much fell. Those stocks are of-
as investors had feared. ten compared to bonds
The Labor Department and they tend to fall when
also said January's spike yields move higher, as
in wages was a bit smaller higher yields make them
than it originally thought. It less appealing to investors
made for a happy ninth an- seeking income. Stocks ini-
niversary for the current bull Trader Ronald Madarasz works on the floor of the New York Stock Exchange. Wall Street got ex- tially declined last week af-
market. actly what it wanted from Friday's jobs report: solid hiring, moderate wage growth and continued ter President Donald Trump
A month earlier, a jump in low unemployment. said he would place tariffs
wages got investors wor- (AP Photo/Richard Drew) on imported steel and alu-
ried about inflation and set minum. They've recovered
off a stock market swoon, anticipated that the solid tend to do better when the company stocks picked up their losses after he granted
giving the benchmark S&P jobs survey portends more economy is growing quick- 25.18 points, or 1.6 percent, exemptions to Canada,
500 index its first 10 percent steady growth in the U.S. ly. to 1,597.14. Mexico, and potentially to
decline in two years. economy. The S&P 500 index climbed Apple rose $3.04, or 1.7 other countries. Gold rose
"I think the fears of wages The Nasdaq composite re- 47.60 points, or 1.7 percent, percent, to $179.98 and Mi- $2.30 to $1,324 an ounce.
getting out of control in this gained the last of its Feb- to 2,786.57. The Dow Jones crosoft jumped $2.11, or 2.2 Silver added 11 cents to
point in the cycle ... were ruary losses and closed industrial average rose percent, to $96.54. Both fin- $16.61 an ounce. Copper
squashed," said Katie Nix- at an all-time high. Banks 440.53 points, or 1.8 per- ished at record highs. Tech- jumped 6 cents, or 1.9 per-
on, chief investment officer also rose as interest rates cent, to 25,335.74. The Nas- nology companies have cent, to $3.14 a pound.
for Northern Trust Wealth increased, and industrial daq composite jumped led the market's rally since The dollar rose to 106.77
Management. and health care and ba- 132.86 points, or 1.8 per- early 2017, and they have yen from 106.24 yen. The
Bond yields also moved sic materials companies cent, to 7,560.81. The Rus- led the recovery from its re- euro rose to $1.2313 from
solidly higher as investors also climbed. Those sectors sell 2000 index of smaller- cent lows as well. $1.2306.q

US hiring surge last month pulls in flood of new workers

By CHRIS RUGABER had spooked investors be- lifted optimism among con-
WASHINGTON (AP) — U.S. cause it raised fears of infla- sumers and businesses. U.S.
employers went on a hiring tion. employers have also ben-
binge in February, adding The hiring boom caught efited from a strengthened
313,000 jobs, amid rising many economists off global economy. And con-
business confidence lifted guard, because they ex- sumers are more confident
by the Trump administra- pected a smaller — though than they have been since
tion's tax cuts and a resilient still healthy — increase. Job 2000.
global economy. gains typically slow as the Investors celebrated the
The surprisingly robust hir- unemployment rate falls, news, sending the Dow
ing, reported by the Labor because companies run Jones industrial average
Department on Friday, was out of workers to hire. up 390 points in early after-
the strongest in 1½ years. The economy has expand- noon trading. The bull mar-
It was accompanied by the ed for 104 straight months, ket reached its ninth anni-
biggest surge in 15 years in or nearly nine years, the versary Friday, with market
the number of people ei- third-largest expansion on Work continues on a new development in Fair Lawn, N.J. On indexes nearly quadrupling
ther working or looking for record, and hiring often Friday, March 9, the Labor Department reported that U.S. em- since March 2009.
work. That kept the nation's declines as recessions fade ployers added 313,000 jobs in February, the most in any month The muted wage growth is
since July 2016, and drawing hundreds of thousands of people
unemployment rate un- further into the past. into the job market. a relief to Wall Street, be-
changed for a fifth straight Yet job growth has accel- (AP Photo/Seth Wenig) cause faster raises could
month at 4.1 percent. erated in recent months. spur higher inflation and
At the same time, average Companies have added report was unambiguously growth is gaining momen- additional interest rate in-
wage growth slowed to 2.6 an average of 242,000 strong, confirming that the tum — a very impressive creases from the Federal
percent in February from a jobs a month over the past U.S. labor market is on fire," development at this stage Reserve. The economy
year earlier. That was down three months, above 2017's said Michelle Girard, chief of the economic cycle." has now gained jobs for 89
from January's revised pace of 182,000. U.S. economist at NatWest The Trump administration's straight months, the longest
pace of 2.8 percent, which "The February employment Markets. "The pace of job tax cuts appear to have streak on record.q