The recent US employment figures were seen as a gold rush scenario in the stock market, with the economy growing without an increase in inflation. On Friday, the New York stock market experienced a significant rise following the release of fresh macro data. The S&P 500 index closed up 1.3 percent, reaching 5,128 points, while the Dow Jones index rose 1.2 percent and the Nasdaq increased by two percent.
Investors on Wall Street surged as weaker-than-expected US labor market numbers led them to anticipate interest rate cuts by the US Federal Reserve. The Helsinki Stock Exchange also closed higher on Friday, reflecting global market trends. The positive response from investors to the labor market report was compared to a gold rush scenario, signaling relief from inflationary pressures and expectations for interest rate cuts later in the year.
Concerns about potential changes in the Fed’s monetary policy and rising interest rates to combat inflation had been weighing heavily on the stock market in recent weeks. However, Friday’s market activity suggested that inflation might be easing, paving the way for potential interest rate cuts later in the year. The Dow Jones index, S&P 500 index, and Nasdaq index all experienced weekly increases. The labor market report showed an increase of 175,000 non-agricultural jobs in April, falling short of the forecast of 240,000 jobs. As a result, investors are now anticipating an interest rate cut as early as September, revised from the previous expectation in November.
Tech companies also contributed significantly to positive stock market performance on Friday. Apple’s stock rose six percent following announcements of a share buyback program and strong interim results. Other technology companies like Nvidia, Microsoft