The recent US employment figures have caused a surge in the stock market, where the economy is growing without inflation. On Friday, the New York stock market experienced a significant rise after fresh macroeconomic data was released. The S&P 500 index closed up 1.3 percent, reaching 5,128 points, which CNBC described as an impressive increase since February. The Dow Jones index rose by 1.2 percent, while the Nasdaq index focused on technology increased by two percent.
Stock prices on Wall Street surged as weaker-than-expected US labor market numbers led investors to anticipate interest rate cuts by the US Federal Reserve. The Helsinki Stock Exchange also closed higher on Friday, reflecting global market trends. The positive response from investors to the labor market report was compared to a gold rush scenario, signaling relief from inflationary pressures and expectations for interest rate cuts later in the year.
There had been concerns in the stock market about potential changes in the Fed’s monetary policy and rising interest rates to combat inflation. However, Friday’s market activity suggested that inflation might be easing, paving the way for potential interest rate cuts later in the year. The Dow Jones index, S&P 500 index, and Nasdaq index all experienced weekly increases.
The labor market report showed an increase of 175,000 non-agricultural jobs in April, falling short of the forecast of 240,000 jobs. Tech companies like Apple contributed to the positive stock market performance on Friday with their six percent increase following announcements of a share buyback program and strong interim results. Other technology companies like Nvidia, Microsoft, Alphabet and Amazon also saw increases in their stock prices.
Overall, the market response to the labor market report and other macroeconomic data was positive indicating investor confidence and optimism in the future economic outlook.
In conclusion: The recent US employment figures were seen as a gold rush scenario in the stock market due to its growth without inflation. Weaker-than-expected labor market numbers led investors to anticipate interest rate cuts by