Wall Street rises sharply after employment data

Friday, May 03, 2024 - 19:52
Point Trader Group

US stocks jumped sharply during these moments of trading, on Friday, after the weaker-than-expected jobs report for April raised hopes that the Federal Reserve would begin cutting interest rates soon.

The Dow Jones Industrial Average rose 410 points, or 1.1%. The Standard & Poor's 500 index rose 1%, while the Nasdaq Composite index rose 1.7%.

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Friday's nonfarm payrolls report showed an increase of 175,000 jobs in April, less than the 238,000 jobs economists had expected. The unemployment rate rose to 3.9% from 3.8% the previous month, according to the Bureau of Labor Statistics. Wage figures were also lower than expected – an encouraging sign of lower inflation.

This report could “herald a period of at least stable interest rates, accompanied by a gradual weakening of the US dollar,” says Florian Ilbo, of Lombard Odier Asset Management.

While Priya Misra, portfolio manager at JP Morgan (NYSE:JPM) Asset Management, confirmed that the jobs data “confirms Powell’s confidence that monetary policy is constrained and that labor supply has been a large driver of strong non-farm payroll growth in recent months.”

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