Weekly Briefing - A strong jobs report sends stocks to new highs

Here is the week in economics, explained without the jargon.

Hiring beat expectations by a wide margin

April’s jobs report showed employers added 115,000 jobs, well above the roughly 48,000 economists had expected, while unemployment held steady at 4.3%. Reports beating forecasts by this much tend to move markets more than reports that land close to expectations, simply because they change what investors thought they knew.

Stocks rallied sharply

Major indexes posted a strong week, with technology stocks leading gains on the back of solid first-quarter earnings and falling oil prices, which eased some of the inflation pressure that has weighed on markets for months. Energy and utility stocks lagged behind as oil prices fell - a reminder that the same news can be good for some sectors and less good for others.

Other data held up too

Construction spending rose more than expected, adding to a broader picture of an economy that, this week at least, looked sturdier than the more cautious data from recent months had suggested.

What it means for you

A strong jobs report and falling oil prices are both genuinely good news for the average household - more hiring generally means more opportunity, and cheaper oil tends to show up at the gas pump within days.