2023-06-02 22:23:51
The jobs report adds more than 700 points to the Dow Jones index
Data from the US Department of Labor showed that companies continued to add jobs in a way that exceeded expectations, and the unemployment rate rose. The main US stock indices jumped, with the Dow Jones Industrial Average adding 701 points to its value, and the Nasdaq index recording its sixth consecutive week of increases.
The markets also benefited from the high investor sentiment following the quick approval of the Senate to pass the “Fiscal Responsibility Act”, which prevents the United States from defaulting on its debt and reduces government spending, so the Nasdaq index added 1.07% to its value, and the S&P 500 index rose by 1.45%, while The rising points of the world’s most famous index represented 2.12% of its value at the beginning of the day.
With today’s gains, the three major indices ended the short week with an increase of nearly 2%, and the Nasdaq index, which is dominated by the technology sector, recorded the longest series of consecutive weeks of rises since 2020.
Non-farm payrolls grew in May by a number that clearly exceeded expectations, rising to 339k compared to forecasts of 190k, marking the 29th consecutive month of positive job growth.
The most important news on Friday was the rise in the unemployment rate in the largest economy in the world from 3.5% to 3.7%, which helps slow the rate of inflation in the country and reduces the possibility of raising interest rates.
In Europe, stocks recorded their best daily gains in two months today, Friday, as investors grew more comfortable with the decline in inflation in the euro area, and the US Congress approved the agreement to suspend the debt ceiling in the United States.
Archyde.com said that indications that the Federal Reserve (the US central bank) will not raise interest rates this month increased this week.
The Stoxx 600 index of European shares closed up 1.5%, and real estate stocks were among the best performers.
Optimism prevailed among investors due to the decline in inflation in the euro zone following data published on Thursday, which boosted hopes regarding the European Central Bank easing monetary policy tightening.
But ECB Executive Council member Fabio Panetta said he expected more interest rate hikes, although he indicated at the same time that the monetary tightening cycle is nearing completion.
In a related matter, oil prices rose by more than 2% today, Friday, with the support of the US Congress’ approval of the agreement to suspend the debt ceiling, as well as the publication of job data that raised hopes for a possible halt to raising interest rates in the United States.
The focus has now shifted to the OPEC+ meeting on June 4, while most analysts expected no agreement on a new production cut.
Brent crude futures rose $1.85, or 2.5%, to $76.13 a barrel, and US West Texas crude futures rose $1.64, or 2.3%, to $71.74, upon settlement.
And US jobs increased more than expected in May, but Archyde.com considered that a decrease in the rise in wages may allow the US Federal Bank to skip an expected hike in interest rates this month, for the first time in more than a year, which might support the demand for oil.
1685747584
#jobs #report #adds #points #Dow #Jones #index
