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US Stocks on Wall Street continue to achieve significant gains, driven by crucial employment data. These numbers hold great importance and directly impact the Federal Reserve’s decisions and the future trajectory of interest rates.
Non-Farm Payrolls (NFP) Report:
In April, the NFP added 175,000 jobs in non-agricultural sectors, surpassing the previous reading of 315,000 jobs. This exceeded market expectations, which had predicted an increase to 243,000 jobs.
Wage Growth:
Wage growth in the United States saw a slight decline. The annual average hourly earnings, which stood at 3.9% in April, decreased from the previous reading of 4.1%. This figure fell below market expectations of 4.00%.
Unemployment Rate:
The U.S. unemployment rate rose to 3.9% in April, up from the previous reading of 3.8%. This indicates higher levels than market forecasts, which had anticipated 3.8%.
Market Speculation:
As labour market conditions deteriorate, speculation has arisen that the Federal Reserve may reconsider and begin lowering interest rates in June. Such a move could further weaken the U.S. dollar.
Stock Market Performance:
The Dow Jones Industrial Average surged to 38,675 points, adding approximately 450 points or 1.2%. The S&P 500 also gained, reaching 5,127 points with an increase of 63 points or 1.3%.
The tech-heavy Nasdaq Composite climbed to 16,156 points, adding around 315 points or 2.00%.
Overall, the positive employment data and market performance signal optimism, but uncertainties remain as the Federal Reserve navigates its monetary policy decisions.
