Stocks Close Week with Win on Positive US Jobs Report

Stocks closed out the first full trading week of December on a high note, with investors feeling optimistic about the US monthly jobs report and the potential for interest rate cuts by the Federal Reserve next year. The Dow Jones Industrial Average rose 0.3%, the S&P 500 advanced 0.4%, and the Nasdaq Composite gained nearly 0.5%, marking the sixth straight week of gains for the major indexes.

The unexpected drop in the unemployment rate to 3.7% in November, along with the addition of 199,000 jobs, provided further evidence that the labor market may not be cooling as quickly as previously thought. This news, coupled with earlier signs of a “soft landing” for the economy, fueled investor optimism and led to gains in the stock market.

In other news, the UK antitrust regulator announced it will examine OpenAI’s partnership with Microsoft for a potential merger probe, following a boost in tech stocks driven by AI buzz. Oil prices also saw a bounce back, although they are still on course for the longest run of losses in five years as the market weighs the impact of potential OPEC+ cuts.

Overall, the positive performance of stocks this week reflects growing confidence among investors that the Fed’s rate hikes have peaked and that the US economy is headed for a soft landing. For more in-depth analysis of the latest stock market news and events, click here. And for the latest financial and business news from Yahoo Finance, read more here.