Stocks rally on strong hiring
A seesaw start to the stock market ended with a rally Friday, as traders bet that robust hiring would boost the economy.
After the government reported strong hiring for June, traders and investors struggled over how to react. At first, they pushed stocks higher because the report was better than expected. Then they pushed stocks lower because the improving jobs market made it more likely the Federal Reserve would scale back its economics stimulus. Investors finally settled on an optimistic outlook.
"In general, I think our economy is standing on its own two feet right now," said David Brown, chief market strategist at Sabrient, a Santa Barbara, Calif., research firm for institutional investors.
The Dow Jones industrial average rose 147.29 points to close at 15,135.84. The Standard & Poor's 500 rose 1.02 percent to 1,631.89. The Nasdaq composite was up 1.04 percent to 3,479.38.
As investors bought stocks, they sold bonds, a sign that they think the Fed will tamp down its stimulus bond buying. The yield on the 10-year Treasury note jumped dramatically to 2.73 percent from late Wednesday's level of 2.51 percent. That was the highest rate since August 2011.