Canada’s main stock index jumped on Friday, led by gains in healthcare shares, while the slowing U.S. jobs growth in April raised hopes of early interest rate cuts by the U.S. Federal Reserve.

At 10:54 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 72.56 points, or 0.33%, at 21,895.78. The index is, however, set for weekly losses.

U.S. job growth slowed more than expected in April and annual wage gains cooled, with traders now adding to bets that the Fed will deliver its first interest rate cut this year in September compared with expectations of one cut in December before the data.

“Today’s weaker numbers need to mark the start of a new slower trend for multiple rate cuts to seriously be back on the agenda – but, by then, the new fear could be a slowing economy,” said Seema Shah, Chief Global Strategist, Principal Asset Management.

Yields on the 10-year Canadian bond were down 8 basis points to 3.653 and the loonie also lost ground after the U.S. data.

Across the border, Wall Street’s main indexes surged with Nasdaq rising above 2% after the jobs report, while gains in Apple and Amgen on upbeat corporate updates added support.

Back home, shares of Open Text dropped 18.6% after several brokerages cut the target price on the software firm post its earnings update on Thursday.

Magna International was down 3.3% after the auto parts supplier missed analysts’ estimates for first-quarter profit and cut its full-year overall sales forecast as it navigates headwinds from supply chain snags.

On the flip side, Trisura Group was the top gainer on the benchmark index, rising 6.7%, after it reported its quarterly insurance revenue above market estimates.

TC Energy was up 3.5% on beating first-quarter profit estimates, as strong energy demand boosted the pipeline operator’s transport volumes of oil and gas.

Wall Street’s main indexes advanced on Friday after a softer-than-expected jobs report revived hopes of the Federal Reserve cutting interest rates this year, while gains in Apple and Amgen on upbeat corporate updates added support.

U.S. job growth slowed more than expected in April and the increase in annual wages fell below 4% for the first time in nearly three years, while the unemployment rate stood at 3.9% compared with expectations that it would remain steady at 3.8%.

“The data is soft across the board from the Fed’s perspective, which is what really matters and an unemployment rate of 3.9% is not something disastrous,” said Jason Pride, chief of investment strategy and research at Glenmede.

“This indicates an economy that is not declining dramatically, but it definitely indicates a looser labor market.”

Traders added to bets that the Fed will deliver its first interest rate cut this year in September.

Yields across government bonds fell after the data, with the yield on the 10-year note last at 4.5036%.

The CBOE Volatility index, also known as Wall Street’s “fear gauge”, touched its lowest level in a month.

The latest economic data follows the Fed’s more dovish-than-expected interest rate guidance in its latest policy meeting, which caused U.S. stocks to rally on Thursday.

Separately on Friday, the U.S. services sector contracted in March, while a measure of prices paid by businesses for inputs jumped, a worrisome sign for the outlook on inflation.

Apple jumped 6%, outpacing other megacap stocks after the iPhone maker unveiled a record $110 billion share buyback program and beat modest expectations for quarterly results and forecast.

Amgen climbed 12.1% as the biotechnology firm said it was very encouraged after completing an interim analysis of its mid-stage study of experimental weight-loss drug MariTide and as it reported first-quarter earnings.

The Dow Jones Industrial Average rose 481.28 points, or 1.26%, to 38,706.94, the S&P 500 gained 58.48 points, or 1.15%, to 5,122.30, and the Nasdaq Composite gained 303.94 points, or 1.92%, to 16,144.89.

Nine of the 11 major S&P 500 sectors were trading higher, with information technology and real estate stocks among the top gainers.

Block rose 5.4% after the Jack Dorsey-led payments fintech firm lifted its full-year adjusted core earnings forecast and revealed plans to add more bitcoins to its balance sheet.

Expedia fell 13% after the online travel agency cut its full-year revenue growth forecast as gross bookings were hit by a drag in its vacation rental platform.

Of the 397 companies in the S&P 500 that have reported earnings to date in the first quarter, 76.8% beat analysts’ expectations, compared with the historical average of 67%, according to LSEG data.

Advancing issues outnumbered decliners for a 5.7-to-1 ratio on the NYSE and a 3.52-to-1 ratio on the Nasdaq.

The S&P 500 posted 17 new 52-week highs and one new low, while the Nasdaq recorded 86 new highs and 24 new lows.

– Reuters and The Associated Press

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