Weaker US jobs data fueled investor optimism, reducing expectations of further Federal Reserve tightening amid strong corporate results.
The S&P 500 closed at a record high, posting its strongest weekly gain since April. The rally was driven by robust corporate earnings and growing investor confidence that the Federal Reserve may halt interest rate hikes after a disappointing US employment report.
The index advanced as labor market softness eased concerns about aggressive monetary policy. Prior to this, the S&P 500 had struggled to break above key resistance levels, with April’s last notable weekly gain marking a period of consolidation.
Markets reacted positively to the shift in Fed expectations, with equities extending gains as bond yields retreated.