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Swift Reversal in Bonds and Rally in Stocks Cap Wild Week for Markets

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A series of data reports and actions by policymakers have led investors to reassess their assumptions about interest rates and the economy.

Stocks and bonds rallied on Friday, extending a sharp reversal after fresh data about the health of the U.S. labor market capped a tumultuous week for investors.

The 10-year government bond yield, which underpins rates on everything from mortgages to business loans, dropped 0.1 percentage points on Friday, another large decline for a market in which daily moves are measured in hundredths of a point. Yields move inversely to prices.

A new report showed that the U.S. economy added fewer-than-expected jobs in October, a sign of a cooling labor market that could reduce the need for the Federal Reserve to raise its key rate again as it aims to slow the economy to fight inflation.

That helped to lift the stock market, which had sold off as rates rose in recent months. The S&P 500 ended the week almost 6 percent higher, recording its best week of the year.

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