Stocks Rally Over 2% as Jobs Numbers Beat Expectations
Stock markets rallied strongly in the US on Friday after jobs data surprised to the topside, the non-Farms number came out better than expected at 253k and the unemployment rate dropped to 3.4%. The Dow rallied 1.65%, the S&P 1.85% and the Nasdaq soared 2.25%. The dollar remained relatively steady against the majors and US treasury yields rose on the day.
Jobs Data Rises – More Questions for the Fed
US stocks markets reacted strongly on Friday after all three components of the Jobs data releases returned positive numbers, non-Farm employment, Average hourly earnings, and the unemployment rate, all confirmed that the US job market remains tight and this will add to Fed decision makers headaches. The expectation is still leaning strongly toward a pause in June; however, this could be the first piece of a puzzle that pushes the Fed for one more hike if the data continues to show inflationary pressures in the US economy. As we move forward, this makes Wednesday’s key CPI number a huge focus for investors.
Quiet Day Ahead Anticipated by Traders
The data calendar is relatively quiet for the day ahead with nothing in the way of tier 1 data releases scheduled across the three trading sessions. This is being seen as a good thing by many investors as they get the chance to digest all the events of last week and what they mean for the bigger picture which should give room for smoother trading conditions. However, everything at the moment in this market comes with a caveat and traders will continue to monitor newswires for any surprises, especially in the US where the focus on the regional banking sector and earnings will continue to influence sentiment.
