After the “Goldilocks” employment data was released, the US stock market closed at a new high
After better-than-expected employment data in June, the US stock market closed at a record high on Friday, indicating that the world’s largest economy is emerging from the pandemic at a strong pace.
U.S. labor market Add to 850,000 new jobs were added last month, exceeding the 720,000 new jobs expected by economists, and much higher than the 583,000 revised figure in May.
Wall Street’s broad S&P 500 index and the technology-based Nasdaq Composite Index reached record highs earlier this week, with both benchmark indexes closing up 0.8%. This rise marked the seventh consecutive trading day for the S&P 500 Index to close at a record level, the longest consecutive rise since 1997.
This increase brought the S&P 500’s weekly gain to 1.7%, and the Nasdaq’s gain of slightly less than 2%. The latter’s strong rise reflects investors’ continued shift to growth and technology stocks, which fell behind earlier this year as portfolio managers bet on company stocks related to the country’s reopening.
The employment data is not strong enough to indicate that the Fed will tend to control its pandemic stimulus measures, which have supported asset prices throughout the health crisis.
Danni Hewson, a financial analyst at AJ Bell, said: “U.S. employment data has brought better news to Wall Street,” he said. This is the “Goldilocks” moment in the financial market—“not too hot nor too cold. “.
“There are enough new jobs to confirm that the economy is developing, [but] Enough unemployed people give a warm embrace to the Fed’s current strategy,” she added.
The rise in the stock market was accompanied by a small rebound in government bonds. The yield on the benchmark 10-year U.S. Treasury note fell 0.03 percentage points to 1.42%.
Although the 10-year Treasury bond yield has increased from 0.91% at the beginning of the year, it has fallen from the high of 1.77% reached in March.Investors have lowered their Inflation expectations In the past month and a half, this has reverberated throughout the market.
Lower inflation forecasts magnify the attractiveness of growth and technology stocks, which seem to have stronger future earnings at low interest rates.
Technology stocks in the S&P 500 index rose more than 3% this week, their best weekly performance since April. Apple and Microsoft’s stock prices have both risen by more than 4% in a week, while chip maker Advanced Micro Devices’ stock prices have risen by more than 10%.
Credit Suisse strategist Jonathan Golub (Jonathan Golub) said: “The operation of the market is obviously affected by interest rates.” “And this is affected by the belief that inflation will not continue to be high, and to the extent that the Fed influences the decision. Next, they will have an impact on the market.”
In Europe, the yield on equivalent German government bonds fell by 0.03 percentage points to minus 0.24%. The Stoxx Europe 600 Index and Frankfurt’s Xetra both closed up 0.3% across the region, while London’s FTSE 100 Index was flat.
“We think that the European market does benefit from the depreciation of the euro,” said Bastien Drut, chief theme macro strategist at CPR Asset Management, referring to the month-long rebound of the dollar against other currencies. The euro rose slightly to 1.1863 US dollars against the US dollar on Friday, and has fallen by more than 3% since the beginning of June.
Although some policymakers in the U.S. Central Bank began to talk more openly about the need to prepare for the gradual end of stimulus measures during the pandemic, in the Eurozone, the European Central Bank has maintained a more moderate stance, reflecting the different steps that countries are taking on both sides of the Atlantic. Recovery.
Oil prices are hovering near their highest level in two and a half years OPEC+Conference Of major crude oil producing countries are struggling to reach an agreement on output. The global oil benchmark Brent crude oil and West Texas Intermediate crude oil both closed at more than US$75 per barrel.
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