Stocks surged on Friday following a weaker-than-expected April jobs report, sparking optimism that the Federal Reserve may consider lowering interest rates soon.
The Dow Jones Industrial Average soared by 450 points, representing a 1.2% increase. Additionally, the S&P 500 saw a substantial jump of 1%, while the Nasdaq Composite surged by 1.8%.
The April nonfarm payrolls report highlighted a gain of 175,000 jobs, falling short of economists’ expectations of 240,000 jobs as per Dow Jones surveys. The unemployment rate also rose slightly to 3.9% compared to the prior month’s 3.8%, according to the Bureau of Labor Statistics. Moreover, wage figures were below projected levels, a positive indicator for inflation.
Commenting on the report, Jamie Cox, managing partner at Harris Financial Group, stated, “The softness across various metrics is generally favorable for the markets. The subdued wage growth could alleviate concerns about a significant resurgence in inflation.”
Source (CNBC)
