Stocks rose to reach record highs on Friday as investors digested a disappointing April jobs report, which showed the U.S. economy added back far fewer jobs than expected last month despite easing stay-in-place restrictions.

The S&P 500 and Dow each reached highs. The Nasdaq advanced, after the disappointing economic data appeared to make a case for monetary policy to stay on hold and interest rates to stay low, supporting tech and growth stocks. Treasury yields steadied after sinking immediately following the jobs report, with the 10-year yield hovering below 1.58%.

The Labor Department’s April jobs report showed that U.S. employers brought back just 266,000 jobs in April, whereas a gain of at least 1 million had been expected. Payroll gains for March were also revised lower. The unemployment rate unexpectedly increased to 6.1%, widening further from its pre-pandemic level of 3.5%. 

The disappointing data served to bolster some…

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