Stocks rallied higher on Friday, with the Dow Jones Industrial Average climbing over 700 points to post its best day since January, as market participants celebrated a strong jobs report and the passage of a U.S debt-ceiling bill.
Here's how the market settled to close out the week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
With Friday's gains, the S&P 500 and Nasdaq added about 1.8% and 2% for the week, respectively, while the Dow finished up 2%. The Nasdaq also posted its sixth straight weekly gain for the first time since 2020.
Driving much of the market's positive gains was the passage of the Fiscal Responsibility Act, which allows the United States to raise its debt-ceiling for two more years. President Joe Biden plans to sign the bill into law on Saturday.
"This is vital," Biden said in an address from the Oval Office on Friday. "Essential to all the progress we've made in the last few years is keeping the full faith and credit of the United States and passing a budget that continues to grow our economy and reflects our values as a nation."
Also in the spotlight, the U.S. economy added a much-more-than-expected 339,000 nonfarm jobs in May while the unemployment rate rose to 3.7%, according to the Labor Department on Friday. May's print marks the 14th straight month that the labor market added more jobs than expected by Wall Street.
"Nonfarm payrolls are the elephant in the room," Bank of America U.S. economist Michael Gapen wrote in a note to clients on Friday, quoted by YahooFinance. "The strength in this metric alone means that a June hike remains on the table in the event of a very strong CPI report on June 13, even if it is not the base case at the moment. And perhaps more important, the continued resilience of the labor market means there is still a strong case for additional hikes later in the year."
In single-stock news, MongoDB
"The move to embed AI in applications requires a broad and sophisticated set of capabilities while enabling developers to move even faster to create a competitive advantage," CEO Dev Ittycheria said in the company's earnings release. "We are confident MongoDB's developer data platform is well positioned to benefit from the next wave of AI applications in the years to come."
Lululemon Athletica
"Our Q1 results were strong as guests responded well to our product offering in all our markets across the globe. A meaningful acceleration in our China sales trend, coupled with lower air freight, contributed to our better than planned financial performance," CFO Meghan Frank said in a statement.
Looking ahead, market participants are trading with the Federal Reserve's June 13-14 policy meeting in mind now that the threat of a U.S. default has dissipated.