Dow closes at record high Friday after strong jobs report

 Stocks rose Friday as Wall Street cheered the US economy’s display of resilience.

The Dow rose 341 points, or 0.8%, to close at a fresh record high of 42,352.75. The S&P 500 gained 0.9% and the Nasdaq Composite added 1.2%. All three major indexes ended the week higher.

That comes after data Friday showed the economy added a whopping 254,000 jobs last month, blowing past economists’ estimates. The gangbusters figure has raised optimism on Wall Street that the economy will achieve a soft landing, or a scenario in which inflation comes down and there’s no recession.

Traders see a 96% expectation that the Federal Reserve will cut rates by a quarter point at its November policy meeting, according to the CME FedWatch Tool. That’s up from a 68% chance yesterday.

Investors are now shifting their attention to key inflation reports due next week. The Consumer Price Index and Producer Price Index reports are both on deck. Earnings season also kicks off next week, with big banks including JPMorgan Chase and Wells Fargo set to report quarterly results.