The US stock market started the week with a strong move on Monday (06/05/24) on the back of renewed hopes of a Federal Reserve interest rate cut in September. The benchmark S&P 500 rose 1%, the Tech-dominated NASDAQ gained 1.2%, and the 30- stock Dow Jones Industrial Average gained 176 points or 0.5%.
Economic data that showed public sector job additions in April were below expectations. This raised hopes that the Federal Reserve could start cutting interest rates earlier than expected.
FOMC MEETING OUTCOME AND US LABOR REPORT IMPACT ON US RATE CUT OUTLOOK.
The S&P 500 jumped 1.3% on Friday (03/05/24) while the Dow Jones Industrial Average gained 450 points and the NASDAQ led the gains by surging 2% on the back of Apple’s stock appreciation in the Technology sector, amid economic data that showed public sector job additions in April were below expectations.
The latest Initial Jobless Claims data explained that the number of Americans filing jobless claims in the latest week remained stable at 208k as well as the previous week, while in fact lower than the forecast of 212k, so the labor market is considered still quite tight.
Wall Street closed in positive territory with the NASDAQ leading the gains by rising 1.5% while the S&P 500 closed 1% higher on Thursday’s trading (02/05/24), led by the Technology sector as investors continued to digest a number of corporate earnings reports ahead of important monthly labor data to be released on Friday.
Earlier, data from ADP Employment Change showed employment in the US private sector increased more than estimated in April, while data for the previous month was revised higher.
Global stock indexes fell on Wednesday (01/05/24) while the Dollar weakened against a number of other currencies after the Federal Reserve kept its interest rates unchanged at 5.25%-5.50% and indicated it was still leaning towards a rate cut following a string of US economic data; although the Fed also raised warning flags on recent disappointing Inflation readings.
The Treasury Department raised its estimate of net borrowing in the April to June quarter to USD 243 billion, up from the USD 202 billion amount estimated in late January, driven by lower cash receipts.
