U.S. stocks ended Friday at record levels after weaker-than-expected employment figures increased expectations that the Federal Reserve could delay another interest-rate increase.

The S&P 500 rose 0.6 percent, while the Dow Jones Industrial Average gained 0.3 percent and the Nasdaq Composite climbed 1.3 percent.

The latest employment figures showed that U.S. employers unexpectedly cut 23,000 jobs in the previous month.

The weaker labour-market performance pushed Treasury yields lower as investors reassessed the likelihood of higher interest rates.

Technology companies were among the major beneficiaries of the market rally. Investors have been particularly positive about companies connected to artificial intelligence after strong quarterly results from several major technology firms.

Nvidia, Microsoft and other AI-related companies have helped drive recent gains in U.S. markets.

The market movement is important for businesses because interest rates influence the cost of borrowing, investment and consumer spending.

Lower expectations for future rate increases can make financing more attractive for companies while also supporting valuations for growth-oriented businesses.

Analysts, however, remain cautious because economic data can change rapidly.

Investors are expected to continue monitoring employment, inflation and corporate earnings before making stronger predictions about the Federal Reserve’s next policy decision.

For now, strong corporate earnings and expectations of less aggressive monetary policy are supporting market confidence.

Source: Associated Press, Reuters