Investing.com – US stocks closed at record highs on Friday as investors cheered a labor market report showing the U.S. economy created more jobs than expected raising expectations for a solid quarter of economic growth.
The Dow Jones Industrial Average closed higher at 24,314.24. The S&P 500 closed 0.55% higher while the Nasdaq Composite closed at 6840.08, up 0.54%.
The Labor Department said Friday, U.S. non-farm payrolls rose by 228,000 jobs in November, as the post-hurricane recovery in the labor market continued. That beat economists’ forecasts for 200,000 new jobs.
Wage growth, however, rose just 0.2% compared to expectations for a 0.3% increase, while October’s wage growth was revised downward to 0.1%.
The job report came ahead of a Federal Reserve’s meeting next week amid expectations that central bank members will vote to raise interest rates for the third time year. Looking beyond the December rate hike, economists expect the Fed will hike rates three more times in 2018.
“A majority” of economists now expect three rate hikes in 2018, up from two rate hikes just a few weeks ago, Reuters said Monday morning, citing a poll.
Also adding to risk-on sentiment was easing uncertainty surround UK-EU Brexit negotiations after media reports suggested the UK agreed to pay the EU up to €50 to settle the so-called Brexit divorce bill.
In corporate news, Microsoft and Google (NASDAQ:GOOGL) were said to have expressed private concerns to Qualcomm (NASDAQ:QCOM) about a Broadcom (NASDAQ:AVGO) takeover, after the chipmaker rejected a $105 bullion bid last month.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: Microsoft Corporation (NASDAQ:MSFT) up 2%, UnitedHealth Group Incorporated (NYSE:UNH) up 1.6% and Boeing Co (NYSE:BA) up 1.5%
Coca-Cola Company (NYSE:KO) down 1.1%, DowDuPont Inc (NYSE:DWDP) down 1% and 3M Company (NYSE:MMM) down 0.9%, were among the worst Dow performers of the session.