Dow Jones jumps 443 points on strong labor data

Wall Street ended the week on a solid note because a better than expected American job report has strengthened investor confidence.

The industrial average of Dow Jones jumped 443 points (1.05%) to carry out Friday gains among the main indices. The S&P 500 advanced 1.03%, closing above the level of 6,000 for the first time since February. The Nasdaq composite climbed 1.2%, dsrive by a rebound in major technology actions.

The S&P 500 and Dow have both increased by more than 1% for the week, while the Nasdaq won more than 2%.

The American economy added 139,000 jobs in May, beating estimates of 125,000, according to data from the Bureau of Labor Statistics. The unemployment rate remained unchanged at 4.2% while wage growth is slightly better than expected. It is reasonable to conclude that we are faced with a resilient labor market despite price and commercial uncertainty and political disorders in the White House.

Trump vs Powell on rates

Despite the strong data, President Donald Trump has renewed its call for the federal reserve to reduce interest rates from a full point, labeling the president of the Fed, Jerome Powell, a shift in the economy. Trump may not get what he wants, because the markets are currently pricing any chance of cutting at the June meeting. Meanwhile, the chances of a drop in September increased from 74% to 62% after Friday’s report.

Meanwhile, Trump has announced that American-Chinese trade discussions will resume in London next week and she will be led by Point Man, Treasury Secretary Scott Bessent.

Next week’s commercial action will be dictated by inflation data and the Fed political meeting in June.