Dow hits record high, stocks notch 3-week win streak ahead of key jobs report

• US stocks were mixed Friday, with the Dow closing at a record high while the S&P 500 and Nasdaq edged lower.

• All three major averages achieved a three-week win streak as investors cheer a resilient economy and cooling inflation.

• Investors await key jobs data next week, including the September jobs report on Friday morning.

US stocks were mixed on Friday, with the Dow Jones closing at a new all-time high while the Nasdaq 100 and S&P 500 traded lower.

Despite Friday’s mixed trading, all three major averages notched a three-week win streak as investors continue to bid up stocks on a resilient economy, Fed interest rate cuts, and cooling inflation.

Investors got more evidence of cooling inflation with the release of the PCE index on Friday, which is considered the Fed’s preferred measure of inflation.

The personal consumption expenditures price index increased by 0.1% in August from July, in-line with economist estimates. On a year-over-year basis, the PCE Index rose 2.2%, slightly below economist estimates of 2.3%.

“The Fed feels as though it has won the battle on inflation and its primary focus is making sure the job market stays steady,” Bellwether Wealth chief investment officer Clark Bellin said.

With the inflation battle potentially over, the main focus for investors and the Fed has turned to the jobs market. That’s why next week is so important.

On Tuesday, investors will get the Job Openings and Labor Turnover Survey, followed by the ADP Employment report on Wednesday and initial jobless claims on Thursday.

But the main event is next Friday, when the September jobs report is released. Economists estimate expect about 145,000 jobs will be added to the economy in September.

According to Interactive Brokers senior economist José Torres, the jobs report could have a big impact on the broader market.

“A sizable miss could undoubtedly lead to a narrative shift in markets of an upcoming downturn, but a sharp gain could push rate reductions further out on the curve. The ideal scenario for bullish investors is a figure close to projections, as it won’t disturb current monetary policy easing expectations,” Torres said on Friday.

Here’s where US indexes stood at the 4:00 p.m. closing bell on Friday:

Here’s what else happened today:

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In commodities, bonds, and crypto:

• West Texas Intermediate crude oil was higher by 1.02% to $68.36 a barrel. Brent crude, the international benchmark, rose 0.68% to $72.09 a barrel.

• Gold was down 0.85% to $2,672.00 an ounce.

• The 10-year Treasury yield was lower by 4 basis points to 3.756%.

• Bitcoin was up 0.86% to $65,741.

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