Thus, the S&P 500 rises 0.5% and is on its way to its seventeenth winning week in the last 19. The Dow Jones Industrial Average climbs 160 pointsor 0.4%, and the Nasdaq composite does it by 0.8%.
Treasury yields declined in the bond market immediately after the release of a jobs report that economists called “very mixed”. The document revealed that employers hired more workers last month than economists expected, but workers’ wages rose less than forecast. He also indicated that job growth in January It wasn’t that strong. as previously thought.
The labor market and the economy in general are in a delicate position, where Wall Street wants them to continue growing, but not so much as to increase pressure on inflation.
Wall Street: the data analyzed by the market
The ultimate goal is for inflation to cool enough to convince the Federal Reserve to reduce its main interest rate from its highest level since 2001. Such a move would release pressure on the financial system and the economy, which has so far avoided falling into recession despite high interest rates. “Overall, these were useful numbers for the Fed to gain confidence,” said Lindsay Rosner, head of multi-sector fixed income investments at Goldman Sachs Asset Management.
After the reportbets on Wall Street indicated that the Fed will likely start cutting in June. The two-year Treasury yield, which tracks expectations for the Fed, fell to 4.44% from 4.51% Thursday afternoon.
Wall Street loves lower interest rates because they encourage people and companies to take on debtwhich can strengthen the economy, and because they boost stock prices and other investments.
Fed Chairman Jerome Powell said a day earlier that the central bank not far from cutting interest rates. It just needs additional data confirming that inflation is sustainably heading towards its 2% target.
Meanwhile, the hope on Wall Street is that the surprisingly resilient economy will boost corporate profit growth.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
