Tech Stocks Surge as Jobs Data Takes Center Stage

Tech stocks led the major averages higher as investors focused on labor market data for clues about interest rates. The Dow Jones Industrial Average lagged behind, while the S&P 500 and Nasdaq Composite saw gains. Signs of a normalizing labor market suggest that the Federal Reserve's interest rate hikes are having the desired impact. Tech stocks, particularly Alphabet, surged after the company launched new AI initiatives. The upcoming monthly US jobs report will be a crucial test for inflation and interest rate expectations before the Fed's last meeting of the year. Oil prices also regained some ground after hitting a five-month low.