The gains made by stocks were impressive — especially after the previous few days of renewed banking fears — so let's start with them. The Dow Jones Industrial Average added 1.65%, the S&P 500 rose 1.85% and the Nasdaq Composite jumped 2.25%.better-than-expected earnings and revenueBroader markets were boosted by April's jobs report, which showed a higher-than-expected increase in jobs growth and an unemployment rate of 3.4% — a record low since 1969.
Markets' reaction might seem confusing at first. A tight labor market implies the Federal Reserve might continue raising interest rates. Generally speaking, that's bad for markets. Recall January's jobs report: There were 517,000 new jobs in December, almost three times the forecast. Markets fell on the news.
Yet this time, markets rallied, suggesting that the worry gripping traders is one of recession, not inflation. A strong jobs market increases the probability that the U.S. economy can tame inflation without contracting too severely. Indeed, there are signs the U.S. economy has been slowing. At the end of April, we learned that GDP rose at an
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Source: CNBC - 🏆 12. / 72 Read more »
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