US stocks rallied on Friday, with the Dow posting its biggest one-day percentage gain since Jan. 6, as shares of Apple surged more than 4% after upbeat results and U.S. jobs data pointed to a resilient labor market.
Adding to the bullish momentum, regional bank shares rebounded from declines tied to the collapse of First Republic Bank. Analysts upgraded a number of lenders they said were oversold.
PacWest Bancorp (PACW.O) rallied 81.7% and Western Alliance Bancorp (WAL.N) jumped 49.2%, while the KBW regional bank index (.KRX) advanced 4.7%.
Apple’s (AAPL.O) quarterly results also cheered investors worried about a potential recession. The iPhone maker’s shares hit their highest level in about nine months, and the stock ended up 4.7% in its biggest daily percentage gain since November. The stock was the biggest positive influence on all three major US stock indexes.
The US Labor Department report showed job growth accelerated in April and wage gains increased solidly, suggesting the labor market has stayed strong despite recent interest rate hikes from the Federal Reserve.