Tuesday, May 21, 2024
HomeTrading RoomAs Traders Make Bets, The Dow Jumps 200 Points

As Traders Make Bets, The Dow Jumps 200 Points

Trading speculation that a rise in the unemployment rate in the US would prevent the Federal Reserve from tightening monetary policy led to a rise in stocks on Friday.

230 points, or 0.7%, were added to the Dow Jones Industrial Average. Both the S&P 500 and the Nasdaq Composite saw increases of 0.7%.

According to the most recent U.S. nonfarm payrolls figures, the unemployment rate increased by 0.1 percentage points to 3.8% in August, the highest level in more than a year. The 3.5% level was what economists had anticipated.

Average hourly earnings rose 4.29% year over year, less than the 4.4% growth predicted by economists surveyed by Dow Jones, which is further indication of a weakening economy and easing pricing pressures.

With 187,000 new hires in August, payroll growth outpaced expectations. However, the initial estimates of employment for June and July were reduced by a total of 110,000 jobs.

Source (CNBC)

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