S&P 500 Sets Closing Record As Jobs Report Eases Recession Fears
Wall Street capped a huge week with a sharp advance Friday after the government's employment report for September and its revision of August's data cooled the market's fears of a recession. The Standard & Poor's 500-stock index reached a new closing high.</br></br>The S&P 500 index gained 14.75, or 0.96 percent, to 1557.59. Its previous closing high was 1553.08, on July 19. The index, which is the basis of many mutual funds and other investments and used as a benchmark for others, also set a fresh trading high, at 1561.91.</br></br>The Dow Jones industrial average rose 91.70, or 0.66 percent, to 14,066.01. It set a trading high, at 14,124.54. The technology-dominated Nasdaq composite index showed bigger gains, rising 46.75, or 1.71 percent, to 2,780.32.</br></br>The Labor Department's report that employers added 110,000 jobs in September -- essentially what analysts had expected -- reassured Wall Street that the job market wasn't pulling back sharply, as was feared a month ago. Though the data appeared to lessen the likelihood of an interest rate cut when the Federal Reserve meets Oct. 30, investors were relieved that the economy does not appear headed for a precipitous slowdown.</br></br>Strength in the job market during a housing downturn and a time of tighter credit conditions has been a pillar of the economy. With consumer spending accounting for about two-thirds of U.S. economic activity, investors are eager for workers to continue to collect their paychecks.