Stocks Hold the Highest Levels since February on Jobs Data – US Market Wrap
Stocks closed at their highest level since February, and bond yields rose as job data eased fears of an impending economic slowdown. Equities also rose on hopes that US-China trade tensions will ease, with Trump announcing that negotiators will meet on Monday.
The S&x;P 500 advanced 1%, pushing the gauge above 6,000. Economically sensitive sectors performed well. Tesla Inc. jumped 3.8%, leading megacaps higher. Treasuries fell across the curve, with two-year yields above 4%. Money markets reduced their bets that the Federal Reserve will cut interest rates twice this year. The dollar rose. Bitcoin also received a boost.
While US job growth slowed in May and previous months’ estimates were revised lower, Friday’s report narrowly exceeded expectations, bolstering bulls who were bracing for disappointment after data this week cast doubt on the strength of American hiring.
Following Friday’s data. Trump urged the Fed to cut rates by a full percentage point, increasing his pressure on Powell.
Nonfarm payrolls increased 139,000 last month, following a combined 95,000 downward revisions to the previous two months. The unemployment rate remained at 4.2%, while wage growth accelerated.
The payrolls figure helped to alleviate concerns about a rapid deterioration in labor demand as companies deal with higher tariff costs and the prospect of slower economic growth.
