Dow ends at record high after jobs data

The news: The Dow posted a record closing high on Friday and the Nasdaq ended with a more than 1% gain as a stronger-than-expected jobs report reassured investors who had worried the US economy may be getting too weak.

The numbers: Among the main indexes: the Dow Jones rose 0.81%, the S&P 500 gained 0.90%, while the Nasdaq added 1.22%. US nonfarm payrolls showed the economy added 254,000 jobs last month, the most since March, and the unemployment rate fell to 4.1%.

The context: The gains in the main indexes came after the stronger-than-expected jobs report reassured investors that US economic activity in the fourth quarter is likely to remain at a solid pace, prompting further reduced bets on the chance of a 50-basis-point reduction at the Federal Reserve's 6-7 November meeting.

Indexes registered just slight gains for the week following worries about increasing tensions in the Middle East. The S&P energy index rose 1.1% on the day along with higher oil prices. With the Middle East concerns, the index jumped 7% for the week in its biggest weekly percentage gain since October 2022. Small caps and financials outperformed, with the Russell 2000 index up 1.5% and the S&P 500 financials index up 1.6%. Spirit Airlines shares dropped 24.6% while other airlines jumped after a report showed Spirit was in talks with bondholders about a potential bankruptcy filing. Rivian shares fell 3.2% after the electric vehicle startup cut its full-year production forecast and delivered fewer vehicles than expected in the September quarter.