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U.S. job growth slows, unemployment ticks higher in April

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Apple ( AAPL ) announces record share buyback, stock jumps

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Expedia ( EXPE ) tumbles after cutting revenue growth forecast

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Indexes up: Dow 1.18%, S&P 1.26%, Nasdaq 1.99%

(Updates to 16:07 EDT)

By Stephen Culp

NEW YORK, May 3 (Reuters) - Wall Street surged to a

higher close on Friday as a softer-than-expected employment

report bolstered the case for rate cuts from the Federal Reserve

while also providing evidence of U.S. economic resilience.

All three major U.S. stock posted robust gains. The

tech-heavy Nasdaq led the pack, rising 2% with an assist from

Apple ( AAPL ) shares following the iPhone maker's record share

buyback announcement.

All three indexes notched their second straight

Friday-to-Friday gains, capping a week in which markets were

encouraged by Fed Chair Jerome Powell's more

dovish-than-expected statements following Wednesday's rate

decision.

The Labor Department's employment report showed the U.S.

economy added fewer jobs than expected, while the unemployment

rate ticked higher and wage growth unexpectedly cooled.

The report likely hit the sweet spot for the Fed, offering

signs the labor market is softening, which Powell has deemed

necessary to put inflation on a sustainable downward path. The

report also provided assurances on U.S. economic health.

The report prompted investors to raise bets the Fed would

implement its first rate reduction in September.

"The investor narrative remains the Fed and interest

rates and today's weak jobs report puts rate cuts firmly on the

Fed's 2024 agenda," said Greg Bassuk, CEO at AXS Investments in

New York. "And while 'higher for longer' remains the roadmap,

this economic data is being warmly embraced by investors, Wall

Street and Main Street, across all sectors"

Fed officials weighed in on the data.

Fed Governor Michelle Bowman reiterated her willingness to

hike rates if inflation progress reverses, and Chicago Fed

President Austan Goolsbee said the employment report boosted

confidence the economy is not overheating.

"Let's remember, it's early May; we shouldn't pretend that

the year's over or somehow every card has been played," said

Oliver Pursche, senior vice president at Wealthspire Advisors,

in New York. "But I don't think for a second that any Fed

official really believes that a rate hike is appropriate given

current conditions and data."

First-quarter earnings season is approaching the final

stretch, with 397 of the companies in the S&P 500 having

reported as of Friday morning. Of those, 77% have posted

consensus-beating results, according to LSEG data.

Apple ( AAPL ) surged 6.0%, after the company unveiled a record $110

billion share buyback program and beat quarterly expectations.

Shares of biotech firm Amgen ( AMGN ) jumped 11.8% after

encouraging interim data on its experimental weight-loss drug

MariTide and first-quarter earnings.

Travel platform Expedia ( EXPE ) cut its full-year revenue

growth forecast, sending its shares sliding 15.3%.

The Dow Jones Industrial Average rose 450.02 points,

or 1.18%, to 38,675.68, the S&P 500 gained 63.59 points,

or 1.26%, to 5,127.79 and the Nasdaq Composite added

315.37 points, or 1.99%, to 16,156.33.

Of the 11 major sectors in the S&P 500, all but energy

ended the session in positive territory, with technology

claiming the largest percentage gain at 3.0%.

Advancing issues outnumbered declining ones on the NYSE by a

3.62-to-1 ratio; on Nasdaq, a 2.00-to-1 ratio favored advancers.

The S&P 500 posted 21 new 52-week highs and one new low; the

Nasdaq Composite recorded 95 new highs and 65 new lows.

Volume on U.S. exchanges was 10.72 billion shares, compared

with the 11.07 billion average for the full session over the

last 20 trading days.