Huge rise in the US stock market, with gains exceeding 700 points

The Dow Jones index rose, recording an increase of more than 707 points, or 2.12%, while the S&P 500 index recorded an increase of 1.51%, and the Nasdaq recorded 1.08%.

While gold prices declined strongly today, losing spot contracts by 1.41% to reach a price of $1,936 an ounce, while spot contracts recorded $1,951 an ounce.

The market moves on the back of today’s data.

US stock indices rose today, Friday, as traders assessed the jobs report for May, as stocks were also affected by the passage of the debt ceiling bill that averts the United States from default.

The Dow Jones Industrial Average jumped 429 points, or 1.3%. The S&P 500 rose 0.9%. While the Nasdaq Composite Index rose by 0.6%, reaching its highest level since April 2022 during these moments of today’s trading.

The S&P 500 and Nasdaq rose 1.3% and 1.5%, respectively. On Friday, the Dow advanced into positive territory, rising 1.3% for the week so far. As for the Nasdaq, it is on its way to ending its sixth consecutive week on the rise, which is a series of gains not seen for the index since 2020

Meanwhile, shares of Lululemon Athletica Inc (NASDAQ:LULU) rose 14% on its strong results, while shares of MongoDB (NASDAQ:MDB) rose more than 30%.

On the other hand, Lucid Motors (NASDAQ: LCID) rose 0.15% to $6.5.

What moves the markets?

The recent strong jobs report pressured stocks on the idea that a flexible labor market will keep the Fed in a position to keep interest rates high.

But the stock market seems to have reacted to the wage increase which showed lower than expected inflation and the unemployment rate which rose more than expected as well.

The US economy added 339 thousand jobs for the month of May,

while experts expected an addition of only 180 thousand, and the previous reading was revised to record 294 thousand instead of 253 thousand.

On the other hand, the US unemployment rate increased by 3.7% in May. While expectations were for an increase of only 3.5%, while the rate rose by 3.4% compared to the previous reading.

The average hourly earnings on a monthly basis increased by 0.3% in April, while expectations were for a rise of 0.4%, and the previous reading was revised to record 0.4% instead of 0.5%.

On an annual basis, it rose by 4.3%, which is what experts expected, but the March reading was 4.4%.

debt ceiling issue

The impending end of the US debt ceiling crisis also helped lift sentiment. The Senate passed a bill to raise the debt ceiling late Thursday night, sending the bill to President Joe Biden’s desk

It comes after the House of Representatives passed the Fiscal Responsibility Act on Wednesday, just days before the June 5 deadline set by US Treasury Secretary Janet Yellen.

Fear that the US could default on its commitments if lawmakers fail to reach a deal spooked some investors earlier in the week, though market watchers said many expected the deal to eventually pass.

markets now

Futures fell 0.6% to $1,983 an ounce. While gold fell in spot transactions by 0.55% to 1966 dollars an ounce.

On the other hand, the dollar index rose 0.2% to 103,710 points. While Brent crude rose by 2% to $75.77 a barrel, and Texas crude rose by 2% to $71.50 a barrel.

Source: sa.investing


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