The S&P 500 Gains and Losses: Strong Jobs Report Fuels Rally

Key Takeaways

• The S&P 500 advanced 1.1% on Friday, April 5, 2024, as the latest employment report showed the U.S. economy added more jobs than expected in March.
• GE Aerospace shares soared, adding to gains posted since the company completed its split from energy division GE Vernova earlier in the week.
• Shares of Enphase Energy tumbled after Citigroup downgraded the stock, citing concerns about the solar firm’s inventory reduction.

Major U.S. equities indexes staged a rally after the latest report from the Bureau of Labor Statistics (BLS) revealed that the U.S. economy added 303,000 jobs in March, above economists’ forecasts and up from February’s revised figure. The strength in the labor market suggests the economy has stayed resilient even as interest rates remain elevated following the Federal Reserve’s inflation-fighting rate hikes. The report also showed wage growth slowed. That’s important because wage growth is one factor in the Federal Reserve’s thought process as they decide whether to cut interest rates, which investors have eagerly been anticipating this year.

S&P 500 Performance

The S&P 500 closed 1.1% higher on Friday as the first trading week of the second quarter drew to a close. The Nasdaq jumped 1.2%, while the Dow was up 0.8%.

GE Aerospace Soars

GE Aerospace shares led the S&P 500 higher, soaring 6.1%. Friday’s uptick added to gains posted earlier this week after the company completed its separation from GE Vernova, the energy division of the former General Electric conglomerate. Meanwhile, GEV shares have not fared as well, sliding since the split and losing another 2.7% on Friday.

Constellation Energy Rebounds

Shares of Constellation Energy, the largest producer of carbon-free energy in the U.S., added 5.4% on Friday, recovering from losses posted Thursday afternoon. Earlier this week, Moody’s upgraded its credit rating on Constellation, and the renewable energy company stands to benefit from tax credits under the Inflation Reduction Act.

Gold Prices Surge

Gold prices jumped to a record high at over $2,320 per ounce, capping off a week of solid gains for the precious metal and helping push mining stocks higher. Shares of Newmont, the world’s largest gold producer, gained 5.1%.

Enphase Energy Faces Downgrade

Enphase Energy shares posted the day’s steepest decline among S&P 500 stocks, plunging 7.1% after Citigroup downgraded the stock to “neutral” and trimmed its price target to $121. Analysts cited concerns about the solar company’s pace of inventory reduction in the U.S. market.

Dayforce Under Investigation

Shares of human resources software provider Dayforce sank 4.9% amid reports of an investigation into possible violations of securities laws. The probe hinges on allegations that the company or its executives may have failed to disclose critical information to investors.

Tesla Faces Volatility

Tesla shares tumbled early in Friday’s session after Reuters reported the carmaker abandoned plans to build an affordable electric vehicle (EV). However, CEO Elon Musk denied the claim, helping the stock claw back a portion of the losses. Tesla shares closed the day down 3.6%.

Overall, the S&P 500 saw a mix of gains and losses on April 5, 2024, driven by a strong jobs report and various company-specific factors. Investors will continue to monitor economic data and corporate developments to gauge market performance in the coming weeks.

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