By TILLY ARMSTRONG ASSISTANT CONSUMER EDITOR FOR DAILYMAIL.COM
Stocks have closed at an all-time high after the November jobs report came in better than expected, while also paving the way for the Federal Reserve to cut interest rates again at its next meeting this month.
The S&P 500 climbed 0.25 percent, while the Nasdaq Composite added 0.81 percent – taking both indexes to record highs.
Data released Friday morning showed America’s job market rebounded in November, while the unemployment rate rose slightly to 4.2 percent.
Employers added 227,000 jobs last month, in a solid recovery from October, when the effects of strikes and hurricanes saw job creation slow substantially to just 36,000.
Friday’s report from the Labor Department provides some relief from investors, confirming that October’s weak jobs report was down to external factors, rather than a more fundamental weakness in the economy.
Markets are now pricing in an 88 percent chance that the Fed will cut interest rates by a quarter percentage point at its next meeting on December 18, according to the FedWatch tool.
Stocks jumping on the news is also good news for Americans with 401(K) retirement accounts, which tend to be invested in these major stock indexes.
‘Data this morning was a Thanksgiving buffet with payrolls spot on, revisions positive, but unemployment ticking higher despite the participation rate falling,’ said Lindsay Rosner, head of multi-sector investing at Goldman Sachs Asset Management.
‘This print doesn’t kill the holiday spirit and the Fed remains on track to deliver a cut in December.’