On Friday, the 3rd of May 2019, all three key indexes of Wall Street had experienced a broad-based rally followed by the reveal of a much stronger-than-anticipated job report, while muted wage growth kept investors riant over the outlook of US economy.
Followed by the release of Friday’s (May 3rd) Labor Department data that told that the US economy had added 2,63,000 new jobs in April and US unemployment rate had fallen to 3.6 percent, the lowest figure since December 1969, the Nasdaq had scored a record high, while S&P 500 had wrapped the day up just a notch shy of a record closure.
In point of fact, a combination of lower unemployment rate, strong job growth and a declining average earning indicating an ease of inflationary pressure, remained supportive towards Fed’s patience stance of keeping the interest rate on hold, and, had been a good sign for the US stock market.
Expressing optimism of further growth of the US indices, a managing partner of Harris Financial Group in Richmond, Virginia, Jamie Cox said, “We continue to have stronger and stronger job growth, and it seems like there’s less and less inflation, which is really odd.
You typically don’t see that, and basically what that signals to the market is that the Fed is on hold. That could portend for better earnings in the future for companies”. On Friday’s (May 3rd) market closure, the Dow Jones Industrials added 0.75 percent to 26,504.95, while Nasdaq Composite gained 1.58 percent to 8,164, and the S&P 500 surged 0.96 percent to 2,945,64.