Wall Street ended the week on a solid note because a better than expected American job report has strengthened investor confidence.
The industrial average of Dow Jones jumped 443 points (1.05%) to carry out Friday gains among the main indices. The S&P 500 advanced 1.03%, closing above the level of 6,000 for the first time since February. The composite of the Nasdaq climbed 1.2%, dsrive by a rebound in the main technological actions.
The S&P 500 and Dow have both increased by more than 1% for the week, while the Nasdaq won more than 2%.
The American economy added 139,000 jobs in May, beating estimates of 125,000, according to data from the Bureau of Labor Statistics. The unemployment rate remained unchanged at 4.2% while wage growth is slightly better than expected. It is reasonable to conclude that we are faced with a resilient labor market despite prices and commercial uncertainty, and political disorders in the White House.
Trump vs Powell on rates
Despite the solid data, President Donald Trump has renewed his call to the federal reserve to reduce interest rates from a complete percentage point, labeling the president of the Fed, Jerome Powell, a will for the economy. Trump may not get what he wants, because the markets are currently pricing any chance of cutting at the June meeting. Meanwhile, the chances of a drop in September increased from 74% to 62% after Friday’s report.
Meanwhile, Trump has announced that American-Chinese trade discussions will resume in London next week and she will be led by Point Man, Treasury Secretary Scott Bessent.
Next week’s commercial action will be dictated by inflation data and the Fed political meeting in June.
