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THE WEEK • Friday close
Bad news for workers turned out to be good news for stocks
The Nasdaq gained 5.19% over the week, the S&P 3.58%, the Dow 2.96% — the strongest week since April, on a jobs report that showed the economy shedding positions.
The S&P closed at 7,757.64, having touched fresh all-time highs twice during the week. The Nasdaq finished at 26,690.62, the Dow at 54,036.93.
The logic runs through interest rates rather than through profits. A weak labour market makes it harder for the Fed to justify raising rates, and lower rates make every future dollar of company earnings worth more today. So a report that was bad for people looking for work was read as good for people holding shares.

Index gains over five sessions — on a report that showed job losses.
Here’s why it lands on your desk: this is one of the more counter-intuitive relationships in markets, and it holds only while inflation stays contained. If prices reaccelerate, weak employment stops being good news and becomes the worst kind.
Source: CNBC / FXEmpire