NEW YORK (AP) -- Wall Street's most influential stock, Apple, is helping to pull the market higher Friday, while beaten-down banks also leap to cut into their sharp losses from a brutal week.
The S&P 500 was 1.3% higher in early trading, though it's still on pace for its worst week in nearly two months. The Dow Jones Industrial Average was up 475 points, or 1.4%, at 33,602, as of 9:45 a.m. Eastern time, while the Nasdaq composite was 1.2% higher.
Treasury yields were jumping in the bond market after a report showed hiring accelerated across the economy by much more than expected last month. The U.S. government's jobs report also showed workers won bigger pay raises in April than expected.
While that's good news, particularly when many economists fear a recession may arrive this year, the data also raises worries inflation may stay high and push the Federal Reserve to keep interest rates higher.
High interest rates have already caused cracks in the U.S. banking system, and fears about what may be next to fall have rocked the industry. This week began with regulators seizing First Republic Bank, which became the third of the four largest U.S. bank failures in history to hit since March.
Investors have been hunting for the next possible weak link in the system, which could see a sudden flight of customers, and driving stock prices down. That's even as banks protested that they were seeing deposit levels stabilize or strengthen. Several of the hardest hit recovered some of their steep losses Friday.
PacWest Bancorp. soared 56.2%, though it's still down 51.2% for the week. Western Alliance Bancorp. gained nearly 38% to trim its loss for the week to 32.6%.
Apple didn't rise as much as those banks, but its moves pack a more potent punch for the market. Apple is the most valuable stock on Wall Street, which gives its moves outsized weight on the S&P 500 and other indexes.
Its 4.4% gain made it the biggest force lifting S&P 500. The iPhone maker reported a drop in earnings and revenue, but the results nevertheless topped analysts' muted expectations.
The story has been similar across the broader market for results during the first three months of the year. Analysts came into this earnings reporting season with very low expectations given high interest rates and a slowing economy.
Companies in the S&P 500 are on pace to report a second straight quarter of profit drops from year-earlier levels, which would mark what Wall Street calls a "profit recession." But the results have been largely better than feared, which has helped give some support to the market.
Big Tech stocks in particular have cruised past lowered expectations, which is key because they dominate the top of the rankings for overall size.
In the bond market, yields leaped immediately after the jobs report as traders bet on it pushing the Fed to keep rates high for longer than earlier expected.
The Fed on Wednesday said that it wasn't sure of its next move after raising its benchmark overnight rate to a range of 5% to 5.25%, up from virtually zero early last year. It's been raising rates at the fastest pace in decades to drive down inflation, but its tool also slows the economy and hurts investment prices.
Many traders expect the Fed to hold rates steady at its next meeting in June, which would be the first time that's happened in more than a year. After that is where expectations diverge.
The Fed has been insistent that it sees inflation coming down slowly, which would mean rates would stay high for a while, if not rise further if inflation were to reaccelerate. Many traders, meanwhile, see the economy weakening so much that the Fed will have to cut rates later this year.
Friday's jobs report offered encouraging and discouraging news, depending on one's outlook.
The strong hiring numbers reaffirm that the job market is remaining resilient. It's propping up the rest of the economy, which has already begun to slow under the weight of much higher interest rates.
But more concerning to pessimists was the 4.4% rise in wages for workers from a year earlier. The fear is too-strong wage increases could push companies to raise prices for their own goods and make other moves that create a vicious cycle that keeps inflation high. That in turn could pressure the Fed to keep rates higher for longer, which would cause more things other than First Republic to break.
The yield on the 10-year Treasury rose to 3.45% from 3.38% late Thursday. It helps set rates for mortgages and other important loans.
The two-year yield, which moves more on expectations for the Fed, rose to 3.90% from 3.79%