Record Highs for S&P 500 and Nasdaq

Investing.com– The S&P 500 and Nasdaq closed at record highs on Friday after data indicated a larger-than-expected rebound in payrolls for November.

At 4:00 p.m. ET (21:00 GMT), the S&P 500 index climbed 0.2% to a record high of 6,088.8, previously topping 6,100 for the first time. The NASDAQ Composite gained 0.8%, also achieving a record closing high, while the Dow Jones Industrial Average fell 123 points, or 0.3%.

Nonfarm Payrolls Rise, Economists Flag Weakness

Nonfarm payrolls increased by 227,000 jobs last month, exceeding the expected 202,000 and following an upwardly revised 36,000 in October, as the labor market struggled due to Hurricanes Helene and Milton alongside a significant strike at Boeing factories on the West Coast.

However, economists noted weaknesses in the data, as the household survey displayed a decline of 355,000 in household employment for November after a 368,000 drop in October.

"The household survey was weak," Macquarie stated on Friday. "The unemployment rate rose on an unrounded basis from 4.14% to 4.25% as household employment contracted."

The overall unemployment rate was reported at 4.2%, meeting expectations and surpassing the previous month's rate of 4.1%. Average hourly earnings stayed unchanged at 0.4%, above the anticipated 0.3%.

"Today's result should keep the Fed on course for a 25 bps rate cut on December 18," it added.

Positive Corporate Earnings Continue

On the corporate side, several companies reported quarterly earnings that were well-received on Wall Street:
– Ulta Beauty (NASDAQ:ULTA) stock rose 9% after raising its annual profit forecast, signaling a revival in demand for perfumes and makeup during the holiday shopping season.
– Lululemon Athletica (NASDAQ:LULU) stock climbed 16% after increasing its full-year forecasts, betting on strong demand for its athletic wear in the U.S. amid the holiday shopping season as well as continued strength internationally.
– Gitlab (NASDAQ:GTLB) stock rose nearly 2% after reporting fiscal third-quarter results and guidance that exceeded expectations, along with announcing a new CEO.
– DocuSign (NASDAQ:DOCU) stock surged over 27% after raising its 2025 revenue forecast, following a strong third-quarter earnings report.

*(Peter Nurse, Ambar Warrick contributed to this article.)