Although the employment index fell below expectations in May, it rose on relief that it had eased the burden of austerity.
Major indexes for the New York Stock Exchange (NYSE) on the 4th (Eastern Time) are as follows.
The Standard & Poor’s 500 index rose △ 37.04 points (0.88 percent) to 4,229.89.
The tech-heavy Nasdaq index rose △ 199.98 points, or 1.47 percent, to 13,814.49.
The Nasdaq 100 index rose △ 241.09 points (1.78%) from the previous session to 13,770.77.
The Russell 2000 index, which reflects value shares, rose △ 8.42 points (0.37%) from the previous session to 2,287.67.
The Dow Jones industrial average rose △ 179.35 points, or 0.52 percent, to 34,756.39.
The CBOEVIX volatility index is 16.42, down ▽ 1.62 points (-8.98%) from the previous session.
The six stocks invested heavily by Seohak ants include Apple (AAPL) 125.89 (1.9 percent), Microsoft (MSFT) 250.79 (2.07 percent), Tesla (TSLA) 599.05 (4.58 percent), NVIDIA 703.13 (3.59 percent), Amazon Dotcom (AMZN) 3206.22 (0.6 percent), and GOOGL 23 percent.
Investors watched the May employment report and the movement of the U.S. government bond rate.
As the number of new employees increased less than expected in May, concerns over an early tightening of the Federal Reserve (Fed) eased somewhat.
The U.S. Department of Labor reported a 559,000 increase in non-agricultural sector employment in May. The figure is below the market estimate of 671,000 people compiled by the Wall Street Journal (WSJ).
Employment rose slightly in April from 266,000 to 278,000. The unemployment rate stood at 5.8 percent, down from 6.1 percent in April and a Wall Street estimate of 5.9 percent.
The dollar fell sharply as employment fell below expectations, and interest rates fell more than 7bp (0.07%). The 10-year bond rate fell to 1.553 percent from 1.624 percent the previous day.
The pressure for interest rate hikes has been greatly lowered as Fed officials reiterated that they will continue their easing stance.
The dollar-yen exchange rate also offset the previous day’s rise and fell to 109.50 yen.
The market has predicted that if employment exceeds expectations in May, concerns over inflation will grow, and that the Fed may discuss tapering at a regular meeting of the Federal Open Market Committee (FOMC) scheduled for mid-June at the earliest.
However, expectations for a steep increase in employment were completely dampened as employment rose only 278,000 in April, which was expected to exceed 1 million in April, and employment in May fell far short of the ADP’s employment figures announced the previous day.
With the government’s stimulus package continuing, markets resumed their rally in relief that the easing financial environment would not be adjusted early.
U.S. President Joe Biden said in a press conference that our economic plan is working on employment in May, calling it a “progress that has lifted our economy out of the worst crisis in the past decade.”
Loretta Mester, president of the Federal Reserve Bank of Cleveland, told CNBC, “Progress is continuing in the employment sector, and this is very good news,” and added, “I want to see further progress.”
He also argued that the Fed should be patient in making policy decisions, saying that wages are clearly rising due to difficulties in recruiting jobs, but this is not enough to promote base inflation.
Jan Hatchius, chief economist at Goldman Sachs, also told CNBC that the hiring will not change the Fed’s behavior much, and that some hawks in the Fed should start tapering discussions after looking at wage indicators, but the majority will see the issue as temporary.
He predicted that the actual tapering announcement to reduce asset purchases will be made in the second half of this year, and the Fed will begin to reduce asset purchases early next year.
Among 11 sectors by industry, only utility-related stocks fell and all 10 other sectors rose.
Among them, technology stocks rose 1.92%, the largest increase, while telecommunications and random consumer goods rose 1.3% and 0.8%, respectively.
Bitcoin prices fell more than 5% on Tesla CEO Elon Musk’s tweet, trading near $36,940.
CEO Musk posted photos and posts of the couple’s breakup and drew broken hearts on the Bitcoin hashtag. Although interpretation is different, markets responded by interpreting it as a break-up with Bitcoin.
Tesla shares rose 4.58% and Nvidia also rose 3.59%.
Technology stocks rebounded, with Microsoft and Apple rising to around 2%.
AMC Entertainment’s share price, which had recently been on a high march, closed down 6% after fluctuating in additional capital increase plans, and BlackBerry’s share price fell 12%.
New York Stock Exchange experts said the Ando rally appeared after the announcement of the employment report.
Bob Dole, chief investment officer at Crossmark Global Investment, told MarketWatch, “The indicators were slightly weaker than expected, but they weren’t terrible. “There was a fear in the market last month as a disappointing indicator,” he said. “But the indicator was not strong enough to trigger the Fed’s early austerity, and investors would have been relieved because it was not as disappointing as in April.”
According to the Chicago Mercantile Exchange (CME) Fedwatch, the Federal Fund (FF) interest rate futures market reflected the possibility of a 25bp base rate hike of 7 percent in December this year. There has been little change from before.
On the Chicago Option Exchange (CBOE), the volatility index fell 1.62 points (8.98 percent) to 16.42.
