Dow Jones Moves Higher Despite Strong US Jobs Report

The Dow Jones Industrial Average is moving higher on Friday, following upbeat US employment figures and hawkish comments by Federal Reserve Governor Michelle Bowman.

The index is on track for its worst week in the last year as strong US economic data has put the Fed’s easing plans into question. Net employment increased in March by 303K, beating expectations of about a 200K rise. Wage figures revealed that salaries keep rising, although the moderation in the annual rate seems to have left hopes for a June rate cut little changed.

The market has shrugged off comments by Fed Bowman, warning about a further rate hike if inflationary trends remain high. These comments mark a verbal escalation after Minneapolis Fed President Neel Kashkari suggested that the bank might refrain from cutting rates this year, which sent equity markets tumbling on Thursday.

All sectors are posting gains, with Communication Services leading with a 1.94% advance, followed by the Technology sector with a 1.64% gain. Tech companies are following with a 1.57% advance. Amazon is leading gains with a 3% rally to $185.39, followed by Salesforce which advances 2.77% to $302.03. Intel drops 2.27% to $38.82, still weighed down by the hefty losses reported for 2023. McDonald’s has a 0.86% decline to $267.777.