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The stock market is on track to notch new highs this week as stocks look to close well in the green Friday. So why are stocks up today?
Well, it seems the bulls are back on parade after a stronger-than-expected January jobs report was released this morning. Indeed, the U.S. economy added more than 350,000 non-farm payrolls in the first month of the year, almost 200,000 more jobs than estimated. This put the unemployment rate at 3.7 for the third consecutive month.
Wage growth was also strong in January, with wages climbing 4.5% year-over-year, higher than the 4.1% consensus estimate.
While this may have actually proven disappointing for investors hoping for a March rate cut, by most accounts, the report was an assuring sign that the economy may stave off recession after all.
Both the S&P 500 and Nasdaq Composite are well in the green heading to the bell, up 1.22% and 1.83%, respectively. Assuming the S&P can hold onto its current gains to market close, this would put the widely-watched index to its highest level ever.
The Dow Jones Industrial Average is also up today, looking to hold onto a 0.35% gain.
Why Are Stocks Up Today?
It seems investors are also responding to strong tech earnings reports recently. Meta (NASDAQ:META) shares are up more than 20% today after the company managed to beat both earnings and revenue projections in its after-hours earnings call on Thursday. Mark Zuckerberg’s brainchild even announced its first-ever dividend payment, a testament to the company’s recent success.
Not alone, Amazon (NASDAQ:AMZN) is also up more than 7%, heading to market close after its own fourth-quarter earnings triumph.
“The price action today is a display that tech can decouple from the rates narrative and trade more on fundamentals,” Dylan Kremer, co-Chief Investment Officer of Certuity, told CNBC. “You’re in this window where tech can trade higher despite where rates are going, and that’s catching people off guard.”
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.