The recent US employment figures were seen as a gold rush scenario in the stock market. This scenario refers to a situation where the economy grows without accelerating inflation. The New York stock market experienced a significant rise on Friday following fresh macroeconomic data. The S&P 500 index closed up 1.3 percent, marking its best performance since February. The Dow Jones index and the Nasdaq also saw increases of 1.2 percent and two percent, respectively.
Stock prices on Wall Street rose due to weaker-than-expected US labor market numbers, which raised investor expectations for interest rate cuts by the Federal Reserve. The Helsinki Stock Exchange also closed higher on Friday. Investors viewed the recent labor market report as a gold rush scenario, indicating relief from inflationary pressures and expectations for interest rate cuts by the Fed.
According to Schroders Director of Americas Operations Adam Farstrup, the stock market has been experiencing nervousness recently amid concerns about the Fed’s monetary policy. However, signs of easing inflation on Friday suggested that the Fed may cut interest rates this year. The Dow Jones, S&P 500, and Nasdaq indexes all saw weekly gains, with expectations for the first interest rate cut now shifted to September.
In April, US non-agricultural jobs saw an increase of 175,000, lower than the forecast of 240,000. The market now anticipates an interest rate cut in September, compared to the previous expectation of November. Tech giant Apple’s stock rose six percent on Friday, announcing a $110 billion share buyback and reporting better-than-expected interim results. Other tech stocks like Nvidia, Microsoft, Alphabet, and Amazon also experienced gains on Friday.
Overall, the stock market’s reaction to the employment figures and inflation expectations contributed to a positive trading week on Wall Street and other global stock exchanges. Investors remain optimistic about the potential for interest rate cuts and the market outlook in the coming months.