NYC, New York – U.S. markets rose on Friday as a result of the debt ceiling agreement and a positive jobs report.
Nonfarm payrolls for May exceeded expectations by a wide margin. A rise of 190,000 was anticipated. However, 339,000 were really recorded. The United States has now experienced job growth for 29 straight months.
“The so-called Goldilocks has entered the house,” Terry Sandven, chief equities strategist at U.S. Bank Wealth Management, said on CNBC on Friday. “Clearly, there are signs that inflation is beginning to decline, and there is speculation that the Fed will switch to pause mode, increasing the likelihood of a soft landing,” says the positive side.
Leading the charge, the Dow Jones industrials surged by 701.19 points or 2.12 percent to close at 33,762.76 on Friday.
To reach 4,282.37, the Standard and Poor’s 500 rose 61.35 points, or 1.45 percent.
To reach 13,240.77, the Nasdaq Composite increased by 139.78 points, or 1.07 percent.
At 1,830.91, the Russell 2000 index saw a significant gain of 62.97 points or 3.56 percent.
The NYSE COMPOSITE (DJ) index increased by 314.11 points or 2.09 percent to close at 15,345.19.
The NYSE AMEX COMPOSITE INDEX increased by 92.40 points or 2.34 percent to close at 4,037.54.
The VIX, often known as the CBOE Volatility Index, finished at 14.59, down 1.06 points or 6.77 percent. The VIX, which gauges market turbulence, saw a significant decline on Friday.
“Today, the Bureau of Labor Statistics reported that the American economy added 339,000 jobs in the month of May, further confirmation that the economy continues its steady growth, and working families are benefiting from the economic policies of this Administration. The 3.7 percent unemployment rate in May remains within a low, narrow range that has remained consistent for more than a year, the longest period of sub-4 percent unemployment since the 1960s,” U.S. Assistant Secretary of Labor for Public Affairs Julie McClain Downey said in a statement Friday.
“Last months record-high labor force participation rate for prime working-age women did not falter. As inflation moderates, 4.3 percent nominal annual wage growth translates to easing financial pressures on families.”
The jobs in 10 significant economic sectors are now higher than they were before the pandemic, according to the report, which McClain Downey called “strong and healthy.”
On Friday’s foreign exchange markets, currencies displayed a range of performances as they closed. While the other major currencies fell, the commodity currencies rose.
EUR/USD: The Euro’s exchange rate to the US dollar dropped to 1.0708, a 0.49 percent loss.
US dollar to Japanese ¥ exchange rate: 139.95.
USD/CAD: In contrast, the Canadian dollar increased 0.19 percent to 1.3423.
British pound: At 1.2449, the British pound declined by 0.59 percent.
USD/CHF: The U.S. dollar increased 0.38 percent in value vs the Swiss franc on Friday, which closed at around 0.9088.
The New Zealand dollar decreased 0.15 percent to 0.6060 against the US dollar.
The world’s stock markets followed their American counterparts on Friday, with the majority of them recording sizable increases, reflecting an upbeat mood among investors.
London’s FTSE 100 index (UK) rose 117.01 points or 1.56 percent to close at 7,607.28.
The DAX PERFORMANCE-INDEX in Germany finished the day at 16,051.23, up 197.57 points or 1.25 percent.
The CAC 40 index (France) saw a gain of 133.26 points or 1.87 percent on Friday, closing at 7,270.69.
The ESTX 50 PR.EUR (Eurozone) closed at 4,323.52, up 1.55 percent or 65.91 points.
The final value of the Euronext 100 Index (Eurozone) was 1,351.29, representing an increase of 22.99 points or 1.73 percent.
The BEL 20 index for Belgium finished the day at 3,632.83, up 80.91 points or 2.28 percent.
The MOEX Russia Index dropped 4.14 points, or 0.19 percent, to close at 2,222.51.
Asia’s Nikkei 225 index rose 376.21 points, or 1.21 percent, to close at 31,524.22 points.
Hong Kong’s HANG SENG INDEX increased by 733.03 points, or 4.02 percent, to 18,949.94.
The SSE Composite Index in China reached a high of 3,230.07, an increase of 25.43 points or 0.79 percent. The amount of trading was 3.697 billion. The Shenzhen Index increased by 162.18 points or 1.50 percent to settle at 10,998.08. The total trading volume was 202.308 million.
Australia’s S&P/ASX 200 index ended at 7,145.10, rising by 34.30 points or 0.48 percent, while the Australian ALL ORDINARIES index concluded at 7,331.20, with a modest gain of 40.50 points or 0.56 percent.
The Singapore STI Index ended the day at 3,166.30, up 7.50 points or 0.24 percent.
The S&P BSE SENSEX in India closed at 62,547.11, increasing by 118.57 points or 0.19 percent.
Indonesia’s IDX COMPOSITE closed at 6,633.26, declining by 3.16 points or 0.05 percent.
Malaysia’s FTSE Bursa Malaysia KLCI concluded at 1,381.26, declining by 1.75 points or 0.13 percent.
The S&P/NZX 50 INDEX GROSS for New Zealand closed at 11,880.90, down 35.23 points or 0.30 percent.
The KOSPI Composite Index for South Korea ended the day at 2,601.36, up 32.19 points or 1.25 percent. The trading volume reached 569,620.
Taiwan’s TSEC weighted index concluded at 16,706.91, with a gain of 194.26 points or 1.18 percent.
Elsewhere, the S&P/TSX Composite index in Canada concluded at 20,024.63, marking an impressive increase of 352.38 points or 1.79 percent. The trading volume stood at 232.22 million.
The Top 40 USD Net TRI Index (South Africa) closed at 3,967.23, surging by 97.00 points or 2.51 percent.
In Latin America, Brazil’s IBOVESPA index closed at 112,590.35, surging by 2,025.70 points or 1.83 percent.
The IPC MEXICO index for Mexico increased by 503.82 points or 0.96 percent to close at 53,227.85. The total trading volume was 223.672 million.
The S&P/CLX IPSA index for Chile finished unchanged at 5,058.88.
In Buenos Aires, Argentina, the Merval rose 240.75 points or 0.07 percent to 353,614.38 Friday.
In the Middle East, Israel’s TA-125 index closed at 1,728.73, declining by 18.29 points or 1.05 percent.
