11/01/2026
The S and P 500 rallied to new highs again on Friday.
Is it sustainable?
U.S. stocks climbed to fresh records on Friday, capping a winning week after the release of the latest jobs report eased concerns about the economy.
The S&P 500 advanced 0.65% to close at 6,966.28, marking a new record close and reaching an all-time intraday high during the session. The Nasdaq Composite rose 0.81% to 23,671.35, while the Dow Jones Industrial Average added 237.96 points, or 0.48%, to finish at 49,504.07—also a record close.
All three major indexes posted solid weekly gains. The S&P 500 rose more than 1% for the week, while the Dow and Nasdaq jumped 2.3% and 1.9%, respectively.
Investor sentiment was buoyed by December’s jobs report, which showed nonfarm payrolls increased by 50,000, below the 73,000 gain economists surveyed by Dow Jones had expected. While the headline figure came in slightly weaker than forecast, the data suggested the U.S. economy remains resilient, reinforcing expectations that growth could pick up in the coming months.
The unemployment rate edged down to 4.4%, compared with economists’ expectations of 4.5%. Markets viewed the decline as a sign that labor market conditions are stabilizing rather than deteriorating.
Taking the payrolls data together with this week’s JOLTS and ADP reports, Anthony Saglimbene, chief market strategist at Ameriprise Financial, said the broader consensus is that the labor market has softened but remains firm. He described the environment as “low-hire, low-fire,” noting that employment conditions have not weakened enough to alarm investors.
“A bigger downside surprise in employment could have raised concerns,” Saglimbene said. “Instead, we got mostly as-expected data this week, which the market is taking as a positive.”
December’s report was also the first jobs release unaffected by the recent U.S. government shutdown, which disrupted data collection for October and delayed November’s report. The Bureau of Labor Statistics previously said a full October report would not be released.
“This is the first clean nonfarm payrolls report in a couple of months,” Saglimbene added. “Based on these numbers, the Fed likely doesn’t need to cut rates in January, and possibly not in March either.”
Homebuilder stocks helped lift the broader market after President Donald Trump directed representatives to purchase mortgage-backed securities in an effort to push mortgage rates lower. Shares of D.R. Horton surged nearly 8%, PulteGroup gained more than 7%, and Lennar jumped over 8%. Home improvement stocks, including Home Depot, also moved higher.
