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Dow closes 701.19 points higher on strong job call, surviving debt default : InfoQuest

The New York Dow Jones Stock Exchange closed higher on Friday (June 2) in response to expectations that the Federal Reserve (Fed) may hold off on interest rate hikes this month. After the release of data, wages in the United States grew modestly in May. The market also welcomed the US Congress passing a bill to raise the debt ceiling to avoid default.

  • The Dow Jones Industrial Average closed at 33,762.76 points, an increase of 701.19 points or +2.12%,
  • The S&P500 Index closed at 4,282.37 points, up 61.35 points, or +1.45%, and
  • The Nasdaq Index closed at 13,240.77, up 139.78 points, or +1.07%.

in this week the Dow rose 2.02%, the S&P 500 rose 1.82% and the Nasdaq gained 2.04%.

All 11 stocks from the S&P 500 ended higher, with leading materials gaining 3.4 percent and luxury shares gaining 2.2 percent.

The Nasdaq rose to a 13-month high during the day and is already gaining for the sixth week in a row. This was the longest consecutive increase since January. 2020

The US Labor Department said on Friday that non-farm payrolls rose by 339,000 in May. That was above analysts’ expectations of 190,000 jobs.

The market responded to the employment numbers. as it shows a strong labor market with employment increasing for the 29th consecutive month.

May’s payroll figure was in line with the 12-month average of 341,000.

At the same time, investors eased concerns about inflation. after revealing hourly wage figures This is the information the Fed pays attention to when looking for signs of inflation.

Average hourly wages for workers rose 4.3 percent in May from a year earlier. That was below analysts’ expectations of 4.4% and month-on-month. Average hourly wages for workers rose 0.3 percent, in line with analysts’ expectations.

Investors continue to weigh expectations that Fed to keep interest rates steady at the June meeting After the latest employment numbers were revealed

The CME Group’s FedWatch Tool shows that 71.3% of investors are leaning the Fed to hold interest rates between 5.00-5.25% at its June 13-14 meeting and 25.2% are leaning in on a 0.25% interest rate hike to 5.25-5.50%

In addition, the market was also positive as investors eased concerns about the US debt default. After the House of Representatives and the US Senate approved a bill to increase the debt ceiling And US President Joe Biden is expected to sign the bill on Friday, before the June 5 deadline.

The CBOE Volatility Index (VIX), a measure of investor anxiety in the US stock market. down Friday Although investors are worried about the US economy. and a deficit on the US debt

The VIX plunged to 14.6 on Friday, its lowest level since November. 2021

On individual stocks, Amazon rose 1.2 percent, while telecommunications shares fell 3.2 percent, while AT&T and T-Mobile shed 3.8 percent and 5.6 percent, respectively, after that report the company Amazon.com Inc. is negotiating with a US telecommunications operator to offer low-cost wireless communications to Amazon Prime subscribers.

Invidia Corp shares fell 1.1 percent, reversing the market, falling for the second day in a row. After surging earlier on rising hopes for future artificial intelligence (AI) revenue.

for market direction in the next period Investors will await the publication of the US Consumer Price Index (CPI) on June 13 for signs of inflation before the Fed votes on interest rates at its June 13-14 meeting.

By InfoQuest News Agency (03 Jun ’23)

Tags: Stock Market , New York Stock Exchange

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