Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

S&P 500 Jumps as Soft Jobs Report Soothes Taper Talk Fears

Stock MarketsJun 05, 2021 02:19
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com – The Dow jumped Friday as a soft monthly jobs report for the second month in a row renewed bets the Federal Reserve will have to wait longer to abandoned its easy monetary policy stance.

The S&P 500 was up 0.79%, the Nasdaq Composite jumped 1.5% and the Dow Jones Industrial Average rose 0.40%, or 139 points.

The economy created 559,000 jobs in May, a sharp increase from the upwardly revised 278,000 in April, but short of economists’ forecast of 650,000.

While “this is not the ‘million jobs per month’ that looked like the base case expectation for the late spring ahead of the April payrolls data, it isn't a disaster either,” Jefferies (NYSE:JEF) said.

Average hourly earnings climbed 2%, stoking inflation fears somewhat as rising wages are unlikely to be reversed. But some suggested businesses could pass on rising costs to consumers to mitigate wage pressure, keeping overall inflation in check.

The tepid jobs report added credence to the Fed’s stance to maintain its bond purchases until there was substantial progress on the economy. 

“Powell's adjusted unemployment rate, which includes misclassified workers and labor force dropouts, declined by a more modest 0.2 % to 9.1%,” Jefferies added. [P]resumably the final destination is 4%, which is the Fed's estimate of longer-run unemployment … [but] we're only about one-fifth of the way toward that goal.”

Bets on a lower-for-longer Fed stance sent Treasury yields lower, pushing growth sectors like tech back on the trading menu.

With the exception of Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and Facebook (NASDAQ:FB), which together make up about quarter of the S&P 500 weighting, climbed more than 1%.

Energy stocks, meanwhile, were supported by rising oil prices amid expectations strong demand over the summer months will help offset the gradual increase in crude production from major oil producers next month.

The wild swings in so-called Reddit meme stocks like AMC Entertainment Holdings Inc (NYSE:AMC) continued as the movie chain tapped the market for more cash for the second time this week. Following its announcement to sell 8.5 million shares, AMC said Friday it may sell up to 11.6 million shares. GameStop (NYSE:GME) slipped 1%, while BlackBerry (NYSE:BB) was down 10%.

In other news, DocuSign (NASDAQ:DOCU) jumped nearly 17% after delivering better-than-expected guidance on revenue following a Q1 beat on both the top and bottom lines.

S&P 500 Jumps as Soft Jobs Report Soothes Taper Talk Fears
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email