U.S. economy saw a massive boost with 254,000 jobs added last month

economy

Stocks surged on Friday as Wall Street celebrated the strength of the U.S. economy.

The Dow jumped 341 points, or 0.8%, closing at a new record high of 42,352.75. The S&P 500 rose 0.9%, and the Nasdaq Composite gained 1.2%, with all three major indexes ending the week on a positive note.

This rally follows the release of data showing the economy added a staggering 254,000 jobs last month, far exceeding economists’ expectations. The impressive job growth has fueled optimism that the economy could achieve a “soft landing,” where inflation eases without triggering a recession  economy.

Traders now see a 96% likelihood that the Federal Reserve will cut interest rates by a quarter point at its November meeting, according to the CME FedWatch Tool, a sharp increase from a 68% probability just a day earlier economy.

Looking ahead, investors are turning their focus to key inflation data set for release next week, with the Consumer Price Index (CPI) and Producer Price Index (PPI) reports on the horizon. Earnings season also kicks off, with major banks like JPMorgan Chase and Wells Fargo slated to report their quarterly results economy.