After turning in a lackluster performance in the previous session, stocks showed a substantial upward move during trading on Friday, as traders reacted positively to a much better than expected report on the employment situation in the month of January.
The rally on Wall Street came following the release of a report from the Labor Department showing that stronger than expected job growth in the month of January drove the unemployment rate down to its lowest level in almost three years.
With optimism about the outlook for the economy generating broad based buying interest, most of the major sectors showed strong moves to the upside on the day.
Networking stocks posted particularly strong gains, driving the NYSE Arca Networking Index up by 4.7 percent to a six-month closing high. Infinera (INFN) helped to lead the sector higher, jumping by 14.6 percent after reporting better than expected fourth quarter results.
Significant strength was also visible among housing stocks, as reflected by the 4.6 percent gain posted by the Philadelphia Housing Sector Index. Standout gains by M.D.C. Holdings and KB Home (KBH) helped to lift the index to its best closing level in well over a year.
Banking stocks also saw considerable strength, resulting in a 3.3 percent gain by the KBW Bank Index. Comerica (CMA) and Bank of America (BAC) turned in two of the sector's best performances.
Airline, electronic storage, healthcare provider, and steel stocks also posted notable gains, while gold and health insurance stocks were among the few groups that bucked the uptrend by the broader markets.
The major averages moved roughly sideways in afternoon trading, closing firmly in positive territory. The Dow jumped 156.82 points or 1.2 percent to 12,862.23, the Nasdaq soared 45.98 points or 1.6 percent to 2,905.66 and the S&P 500 surged up 19.36 points or 1.5 percent to 1,344.90.
For the week, the Dow rose by 1.6 percent, the Nasdaq shot up by 3.2 percent and the S&P 500 advanced by 2.2 percent. With the gains, the Dow ended the session at its best closing level in over three years, while the Nasdaq reached an eleven-year closing high.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.