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. On Friday, the New York stock market experienced a significant rise, with the S&P 500 index closing up 1.3 percent and marking its best performance since February. The Dow Jones index and the Nasdaq also saw increases of 1.2 percent and two percent, respectively.
The Helsinki Stock Exchange also closed higher on Friday, 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.
In April, US non-agricultural jobs saw an increase of 175,000, lower than the forecast of 240,000. 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, investors remained optimistic about the potential for interest rate cuts and the market outlook in the coming months as they viewed recent labor market reports as a gold rush scenario in which inflationary pressures are eased and expectations for interest rate cuts by the Fed are raised.
