The New York stock exchanges made a significant recovery on Friday after a positive labor market report was published. This report showed that the US labor market remained solid in May despite uncertainty from the customs policy of the Washington government. More jobs were created than expected, even though the figures for March and April were revised downwards. The unemployment rate remained stable, while hourly wages rose more than expected.
Market Reaction
- Dow Jones Industrial: The leading index rose by about 1.05% to 42,762.87 points, resulting in a weekly gain of 1.2%. In another report, an increase of 0.99% to 42,738.68 points was reported, also indicating a weekly gain of about 1.1%.
- Nasdaq 100: The index, dominated by technology stocks, rose by about 0.99% to 21,761.79 points, representing a weekly gain of 2%. Another report noted an increase of 1.22% to 21,811.29 points, corresponding to a weekly gain of 2.2%.
- S&P 500: The broad market index closed 1.03% higher at 6,000.36 points. Another report mentioned an increase of 1.12% to 6,005.97 points.
Economic Significance
The positive labor market report has led to stabilization and optimism in the economy. The rising hourly wages indicate a robust labor market, although they could also signal potential inflationary risks. Financial market experts view the economic expectations of market participants as predominantly positive, as inflation concerns currently take a back seat.
Additional Factors
In addition to the positive labor market data, there were also announcements about new trade talks between the US and China, which, however, did not provide a sustainable boost for the prices. These developments contribute to the overall sentiment in the markets and could have further long-term impacts on the economy.