U.S. stocks rallied, with the Standard & Poor’s 500 Index recovering from its steepest drop in two months amid its strongest gain in nearly three, as jobs data bolstered confidence that the economy is strong enough to withstand higher borrowing costs.
Technology and financial shares paced Friday’s advance, with Apple Inc., Microsoft Corp. and JPMorgan Chase & Co. all rising more than 3 percent, to cap a whipsaw week of trading that drove the benchmark index to moves of more than 1 percent in four straight sessions.
The Standard & Poor’s 500 Index climbed 2 percent to 2,091.31 at 4 p.m. in New York, its strongest gain since Sept. 8. The gauge posted its ninth weekly advance in the last 10.
European shares recovered from most earlier losses after better-than-expected confidence data offset concerns about China’s slowdown.
The Stoxx 600 fell 0.2 percent at the close of trading, paring a decline of as much as 0.7 percent after a report showed economic confidence in the euro area matched its highest level in more than four years.
The data come as the European Central Bank prepares to make a decision on whether to increase stimulus. Speculation of an increase, plus optimism that the global economy is strong enough to withstand higher U.S. interest rates, fueled a 13 percent rebound in stocks from a low in September.
The Stoxx 600 started the day with losses, following a selloff in Chinese shares, as data on the nation’s industrial profits disappointed and some large brokerages disclosed regulatory probes.
A gauge of miners slumped the most of the 19 industry groups on the Stoxx 600 as commodity prices slid. Anglo American Plc tumbled 8.2 percent to a record low, Rio Tinto Group slid 3.2 percent and BHP Billiton Ltd. lost 3.1 percent.
The Stoxx 600 posted a weekly advance of 0.5 percent, with the number of shares changing hands today about a third lower than the 30-day average.
Among shares moving on corporate news, Altice NV added 3.7 percent after buying the rights to broadcast English Premier League soccer in France and Monaco. Banca Monte dei Paschi di Siena SpA rose 1.9 percent after the ECB set new minimum capital ratios below the Italian lender’s current level.
Evonik Industries AG retreated 3.3 percent after a report that rival Sumitomo Chemical Co. plans to double its methionine capacity. The animal-feed ingredient is the German company’s primary earnings driver.