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Stock market today: Indexes rise as rate-cut odds edge up after jobs report

The U.S. stock market experienced a significant rally on Friday following a jobs report that indicated a cooling labor market, potentially signaling the end of the Federal Reserve's rate hikes. The November jobs report showed an addition of 199,000 jobs, surpassing expectations, but wage growth slowed, and the unemployment rate ticked up to 3.7%. This data suggested to investors that the Fed might pause its rate hikes, with markets now pricing in a 50% chance of a rate cut by May 2024. The S&P 500, Dow Jones Industrial Average, and Nasdaq all closed higher, with gains of 0.4%, 0.4%, and 0.45% respectively. The market's reaction was driven by the belief that the Fed's aggressive rate hikes might be over, as inflation appears to be cooling, and economic growth could slow without further rate increases. This optimism was further fueled by comments from Fed officials indicating a potential pause in rate hikes, although they remain cautious about declaring victory over inflation.

Read the Full Business Insider Article at:
[ https://markets.businessinsider.com/news/stocks/stock-market-today-jobs-report-november-fed-rate-cuts-outlook-2024-12 ]