U.S. stocks rallied on Friday after the Labor Department reported that nonfarm payrolls increased by 255,000 in July, surpassing economists’ estimates of 180,000. The unemployment rate remained steady at 4.9%.

The strong jobs report eased concerns about a potential slowdown in the U.S. economy and fueled optimism about future growth. Investors reacted positively, driving major stock indices higher.

Market Performance

• The Dow Jones Industrial Average rose by 191.48 points, or 1.04%, to 18,543.53.
• The S&P 500 gained 18.62 points, or 0.86%, to 2,182.87.
• The Nasdaq Composite added 54.87 points, or 1.06%, to 5,221.07.

Sector Highlights

Financial stocks led the advance, benefiting from expectations of higher interest rates. Technology and consumer discretionary stocks also performed well.

The positive economic data is expected to influence the Federal Reserve’s monetary policy decisions in the coming months.