Monday, June 17, 2024

The jobs report added more than 700 points to the Dow Jones index


The jobs report added more than 700 points to the Dow Jones index

Data from the U.S. Labor Department showed companies continued to add jobs that beat expectations and the unemployment rate rose. Major U.S. stock indexes rose, with the Dow Jones industrial average adding 701 points and the Nasdaq index posting a sixth straight week of gains.

Markets benefited from higher investor sentiment after the Senate’s swift approval to pass the “Fiscal Responsibility Act,” which prevents the United States from repaying its debt and cuts government spending, so the Nasdaq index added 1.07% to its value. , and the S&P 500 index rose 1.45%, while the rising points of the world’s most popular index represent 2.12% of its value at the beginning of the day.

With today’s gains, all three major indices ended the shortest week close to 2%, with the Nasdaq index, dominated by the technology sector, posting the most consecutive weeks of gains since 2020.

Non-farm payrolls grew in a clearly better-than-expected number in May, rising to 339k compared to forecasts of 190k, marking the 29th straight month of positive job growth.

The most important news on Friday was that the unemployment rate in the world’s largest economy rose to 3.7% from 3.5%, helping to lower the inflation rate in the country and making it less likely to raise interest rates.

In Europe, stocks posted their best daily gain in two months on Friday as investors grew more comfortable as inflation eased in the euro zone and the US Congress approved a deal to suspend the US debt ceiling.

See also  UAE banks' capital and reserves stood at AED 470 billion at the end of October.

Signs that the Federal Reserve will not raise interest rates this month increased this week, according to Reuters.

The Stoxx 600 index of European shares closed up 1.5%, and real estate stocks were the best performers.

A drop in inflation in the euro zone buoyed optimism among investors after data released on Thursday boosted hopes of the European Central Bank easing monetary policy.

But ECB Governing Council member Fabio Panetta said he expected further interest rate hikes, although he hinted that the monetary tightening cycle was nearing completion.

In a related way, today Friday, oil prices rose more than 2%, supported by the US Congress’s approval of a deal to suspend the debt ceiling, as well as the release of jobs data that raised hopes for a possible stop should raise interest rates in the United States.

Attention now shifts to the OPEC+ meeting on June 4, while most analysts expect no agreement on new production cuts.

Brent crude futures were up $1.85, or 2.5%, at $76.13 a barrel, while US West Texas Intermediate crude futures were up $1.64, or 2.3%, at $71.74.

U.S. jobs rose more than expected in May, but a slowdown in wage growth may allow the U.S. Federal Reserve to skip an expected hike in interest rates this month, the first time in more than a year, according to Reuters. Support oil demand.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

Share post:


More like this

The easiest way to access the best UAE stocks

The most common way to invest in the UAE...

The Rising Demand for Model Ships in Dubai

Dubai, known for its stunning architecture and vibrant economy,...

Exhibition Stand Builders in Dubai

Dubai, a global hub for trade and commerce, is...

Unlocking the Power of Booking Engines in the Hospitality Industry

In an era dominated by technology, the hospitality industry...