Dow Jones, major indices inch higher after weak labor data release

The main American stock indices increased on Wednesday, June 4, while weaker than expected labor market data gave investors a verification of reality on the force of the economy.

The industrial average of Dow Jones increased by 0.05%, the S&P 500 increased by 0.13%and the composite of the heavy Nasdaq in technology won 0.20%, although the three fought for a clear direction in the middle of renewed concerns concerning employment.

Merchants focused on employment figures, which seemed to have promised good news earlier this week. On Tuesday June 3, an investigation into job offers showed regular growthWhile new positions were in parity with the number of job seekers. However, new data has destroyed these hopes.

A survey carried out by the ADP payroll processing company has shown an increase in the payroll in the private sector of Only 37,000 in May. This is a sharp decline compared to an increase of 60,000 in April, missing the expected figure of 110,000 by significant margin. Big Miss now changes the prospects of the crucial non -agricultural pay report on Friday.

Weak job data add to economic uncertainty

Low reading on Friday labor market data will add to growing uncertainty. This is particularly significant because the federal reserve, a key influence on the market, is struggling with pressures of all directions. On the one hand, Donald Trump’s budget would lead to a 2.4 billions of dollars deficit.

Although the figure is lower than that previously estimated, it already causes agitation among the holders of the Treasury. This is especially true after Moody’s Downragrade American debt. However, the yields on the great treasury vouchers were down on Wednesday, with treasury yields at ten years to 4.353%, down 0.107% on the same day.

At the same time, Bitcoin (BTC) also felt the effects of economic uncertainty. “Digital gold was negotiated at $ 104,996, down 0.99% in 24 hours. However, investors flocked to goldwhich was up $ 3,374 per $ 0.66%.