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U.S. Stocks Erase Drop Amid Optimism on Economy After Jobs Surge

  • October's 271,000 payrolls gain the biggest this year
  • Odds for December Fed interest rate increase rise to 68%
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U.S. Employment in Oct. Surges By Most This Year

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U.S. stocks erased declines in the final hour of trading as the biggest monthly surge in payrolls this year boosted optimism on the economy, even as the Federal Reserve prepared to raise interest rates.

Sharp gains in bond yields and the dollar separated the session’s biggest winners and losers in equities. Banks rallied as investors bet rising rates will help boost profits, while utilities in the S&P 500 fell the most since August as the group’s dividend payout becomes less attractive compared to Treasury yields. Energy shares followed oil lower as a stronger currency reduces the appeal of dollar-denominated commodities.