Stocks extended their weekly rally after weaker-than-forecast U.S. jobs data bolstered the case for President Joe Biden’s US$1.9 trillion coronavirus relief package. The dollar fell.

The House adopted the budget resolution that cleared the Senate early Friday, paving the way to pass a stimulus bill in coming weeks with only Democratic votes. The S&P 500 climbed to another record in its best week since November as all of its major groups but tech rose. The surge in GameStop Corp. after Robinhood Markets Inc. removed limits on buying the stock did little to repair the video-game retailer’s weekly plunge of about 80 per cent. Two-year Treasury note yields matched their record low amid a drop across shorter-dated rates.

The recovery in the U.S. labor market disappointed for a second month as modest job growth highlighted the persistently difficult prospects for millions of unemployed Americans. Nonfarm payrolls increased by just 49,000 after a downwardly revised 227,000 December drop, strengthening the case for another relief package. President Biden gave the strongest indication yet he’ll push for stimulus without Republican support, saying Friday’s weak economic data show the risk of doing “too little.”

“The market is going to be in a bad news is good news scenario -- bad news is temporary and likely to be met with additional support,” said Steve Chiavarone, portfolio manager and equity strategist at Federated Hermes. “Many investors would have a very hard time selling a market when they know vaccination is coming and they know additional stimulus is coming. It’s just really hard to sell that.”

In corporate news, Pinterest Inc. surged as the digital scrapbooking and search company reported sales that topped estimates. In the meantime, Peloton Interactive Inc. sank after saying said it can’t keep up with surging demand for its exercise machines and warning that profit will be squeezed.

These are some of the main moves in markets:

Stocks

The S&P 500 climbed 0.4 per cent as of 4 p.m. New York time.
The Stoxx Europe 600 Index was unchanged.
The MSCI Asia Pacific Index increased 0.9 per cent.

Currencies

The Bloomberg Dollar Spot Index decreased 0.6 per cent.
The euro climbed 0.7 per cent to US$1.2046.
The Japanese yen strengthened 0.1 per cent to 105.40 per dollar.

Bonds

The yield on 10-year Treasuries rose three basis points to 1.17 per cent.
Germany’s 10-year yield advanced one basis point to -0.45 per cent.
Britain’s 10-year yield increased four basis points to 0.482 per cent.

Commodities

West Texas Intermediate crude climbed 1.4 per cent to US$57.03 a barrel.
Gold rose 1 per cent to US$1,811.97 an ounce.
Silver added 2.1 per cent to US$26.90 per ounce.