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Associated Press

  • US equities jumped on Friday after disappointing labor-market data boosted hopes for an end-of-year stimulus compromise.
  • The S&P 500, the Dow Jones industrial average, and the Nasdaq composite closed at record highs.
  • The US added 245,000 nonfarm payrolls in November, handily missing the consensus economist estimate of 460,000 additions. The unemployment rate fell to 6.7% from 6.9% and met forecasts.
  • The data suggests the nation’s economic recovery is slowing, and politicians and economists pointed to the report as a signal to expedite stimulus talks.
  • Oil swung higher after OPEC+ decided to lift production by 500,000 barrels per day starting in January. West Texas Intermediate crude gained as much as 2.3%, to $46.68 per barrel.
  • Watch major indexes update live here.

US stocks gained on Friday after worse-than-expected November jobs data lifted hopes for a near-term stimulus deal.

The benchmark S&P 500, the Dow Jones industrial average, and the Nasdaq composite all set intraday records and closed at all-time highs.

The country added 245,000 nonfarm payrolls last month, the Bureau of Labor Statistics said Friday. Economists surveyed by Bloomberg expected a much higher reading of 460,000 additions. The total also marked a drop from the 610,000 jobs added in October.

The US unemployment rate dipped to 6.7 from 6.9%, meeting economists’ forecasts. The rate has fallen steadily from a peak of 14.7% in the spring, but the pace of recovery has slowed significantly in recent months.

Here’s where US indexes stood at the 4 p.m. ET market close on Friday:

Read more: Morgan Stanley handpicks 42 stocks to buy as their company-specific strengths help them deliver strong growth for many years to come

Though the data surprised to the downside, it spurred optimism for a stimulus compromise before the end of the year. Democratic and Republican lawmakers have warmed to a $908 billion proposal, the first major step forward in stimulus efforts after months of gridlock. The package includes funding for small businesses, aid for state and local governments, and expanded federal unemployment benefits.

«Today’s report is beckoning lawmakers to act on additional fiscal stimulus measures in order to bridge the output gap in the economy until a vaccine is deployed,» said Charlie Ripley, a senior investment strategist for Allianz Investment Management, adding that «the longer they hold out the wider the gap may become.»

Various politicians have expressed support for a rapid response. Senate Minority Leader Chuck Schumer said the data «shows the need for strong, urgent emergency relief is more important than ever.»

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President-elect Joe Biden said the report indicated that the recovery «is stalling» ahead of what’s set to be a dire winter.

«This situation requires urgent action,» Biden said in a statement. «Congress and President Trump must get a deal done for the American people.»

Energy and materials stocks led the S&P 500 to its record. Consumer-discretionary and utilities stocks lagged behind the broader market.

The gains came after a mixed Thursday session that placed the Nasdaq composite at record highs. Stocks wavered into the close after The Wall Street Journal reported that Pfizer cut its vaccine-distribution target because of supply-chain issues. The news pulled the S&P 500 into a loss, while the Dow and the Nasdaq posted mild gains.

Read more: HSBC says buy these 31 global stocks that are exposed to the pandemic’s biggest tech disruptions and set to become growth engines of the future

COVID-19 cases continue to climb – the US reported more than 210,000 new cases on Wednesday, bringing the seven-day average to about 173,000, according to the COVID Tracking Project. Hospitalizations neared 101,000, and total deaths exceeded 267,000.

Bitcoin dipped below $19,000 on Friday after climbing as high as $19,556.86. The cryptocurrency has retraced most of its Tuesday losses but remains far from retaking the record of $19,920 notched at the start of the week.

Spot gold fell as much as 0.6%, to $1,829.28 per ounce, before paring losses. The US dollar weakened against an index of Group-of-20 currencies, and the 10-year Treasury yield hit its highest level since March.

Oil rallied after OPEC+ ruled to lift production by 500,000 barrels per day starting in January. West Texas Intermediate crude gained as much as 2.3%, to $46.68 per barrel. Brent crude, oil’s international benchmark, rose 2.4%, to $49.86 per barrel, at intraday highs.

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The stimulus-plan compromise backed by top Democrats scraps a fresh wave of $1,200 direct payments that economists want

Read the original article on Business Insider