A lot went right today.  In addition to the easing fears of trade wars and the hint of a thaw in tensions with North Korea, the February jobs report came in much higher than expected and that coupled with a wage report showing only a very modest increase after last month’s whopper increase eased market fears of potential runaway inflation.  Thus the Dow soared, really soared a big 440 points, as did both other major indexes.  This is also the 9^th anniversary of this bull market, the second longest on record, though it’s been pointed out a number of times in this space that there’s been much expert opinion that we’ve had a number of corrections in 9 years so it’s not really nearly as long as everyone supposes.  The Dow is now about 5 percent below the January high which is about halfway back from last month’s low.  The S&P has fared even better, now only 3 percent below the high, 10 percent above February’s low.  Volume was 6.8 billion. 

fri  MARCH 9, 2018 / 4:40 pm

Wall Street climbs on bull market's birthday as inflation fears ebb

Sinéad Carew

DJ:  25,335.74  +440.53      NAS: 7,560.81  +132.86        S&P:  2,786.57  +47.60     3/9

NEW YORK (Reuters) - To celebrate the bull market’s ninth birthday on Friday, the three major U.S. stock indexes climbed almost 2 percent and the Nasdaq closed at a record high, as February’s jobs report assuaged fears of inflation and aggressive interest rate hikes.  A month ago, the market had been spooked by wage growth that fueled inflation fears, leading to a spike in volatility and a stock market correction. That sentiment has reversed over recent weeks with the market gradually nudging higher.  The bull market, which began on March 9, 2009, is the second longest on record, leading to questions about how much longer it can last. 

Along with the jobs data, stocks were supported by easing fears of trade wars and signs of a thaw in nuclear tensions with North Korea after U.S. President Donald Trump said he was prepared to meet the country’s leader.

Inflationary fears dissipated on Friday after U.S. Labor Department data showed nonfarm payrolls jumped by 313,000 jobs last month, while average hourly earnings rose only 0.1 percent compared with a 0.3 percent rise in January.

“If we can continue like that - keep the participation increasing and keep wages steady - that’s going to be a positive scenario so the market doesn’t get overly worried about inflation running away,” said Catherine Avery, President of Catherine Avery Investment Management in Greenwich, Connecticut.  But investors will be watching closely to see if data from one month becomes a trend, Avery said.

The Dow Jones Industrial Average .DJI rose 440.53 points, or 1.77 percent, to end at 25,335.74, the S&P 500 .SPX gained 47.6 points, or 1.74 percent, to 2,786.57 and the Nasdaq Composite .IXIC added 132.86 points, or 1.79 percent, to 7,560.81. 

The S&P spiked higher ahead of the close around the time the Wall Street Journal issued a report that Trump’s lawyers are seeking to use an interview with the president as leverage to end special counsel Robert Mueller’s Russia investigation. The story cited an unnamed person familiar with the discussions.

“The market is being driven by a very strong jobs report and lack of wage inflation. The Goldilocks economy reappears. But anything that accelerates the (Russia probe) and removes some uncertainty is good. The financial markets really dislike uncertainty,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

While the Dow ended 4.8 percent below January’s record high, it was 8.5 percent above its February lows. The S&P closed 3 percent below its January record high but 10 percent above last month’s lows.

For the week the S&P rose 3.5 percent while the Dow gained 3.25 percent and Nasdaq rose 4.2 percent.  Advancing issues outnumbered declining ones on the NYSE by a 2.77-to-1 ratio; on Nasdaq, a 2.81-to-1 ratio favored advancers.  The S&P 500 posted 62 new 52-week highs and no new lows; the Nasdaq Composite recorded 214 new highs and 16 new lows.

Volume on U.S. exchanges was 6.82 billion shares, compared to the 7.47 billion average for the last 20 trading days.