US Stock Market Soars Over 700 Points, Gold Prices Drop: May Jobs Report and Debt Ceiling Bill Impact on Market Movement

Investing.com – Updated at 18:35 GMT

The Dow Jones index rose by more than 707 points, or 2.12%, while it recorded an increase of 1.51%, and the Nasdaq recorded 1.08%.

While gold prices declined strongly today, losing spot contracts by 1.41%, to reach a price of $1,936 an ounce, while spot contracts recorded $1,951 an ounce.

The market moves on the back of today’s data.

US stock indices rose on Friday as traders assessed the May jobs report, as stocks were also affected by the passage of the debt ceiling bill that averts the US from default.

It jumped 429 points, or 1.3%. The S&P 500 rose 0.9%. While it rose by 0.6%, reaching its highest level since April 2022 during these moments of today’s trading.

The S&P 500 and the Nasdaq rose 1.3% and 1.5%, respectively. On Friday, the Dow advanced into positive territory, rising 1.3% for the week so far. As for the Nasdaq, it is on its way to ending its sixth consecutive week on the rise, which is a series of gains not seen for the index since 2020.

Meanwhile, shares rose Lululemon Athletica Inc (NASDAQ:) rose 14% on its strong results, while shares of MongoDB (NASDAQ:) by more than 30%.

On the other hand, Lucid Motors (NASDAQ:) rose 0.15% to $6.5.

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What moves the markets?

The recent strong jobs report pressured stocks on the idea that a flexible labor market will keep the Fed in a position to keep interest rates high. But the stock market seems to have reacted to the wage increase which showed lower than expected inflation and the unemployment rate which rose more than expected as well.

For the month of May, while experts expected an addition of 180 thousand only, the previous reading was revised to record 294 thousand instead of 253 thousand.

While there were 283 thousand jobs in May, and expectations indicated an addition of only 160 thousand, and the previous reading was revised to record 253 thousand instead of 230 thousand.

On the other hand, it increased by 3.7% in May. While expectations were for an increase of only 3.5%, while the rate rose by 3.4% compared to the previous reading.

It increased by 0.3% in April, while expectations were for a rise of 0.4%, and the previous reading was revised to record 0.4% instead of 0.5%. As for Ali, it rose by 4.3%, which is what experts expected, but the March reading was 4.4%.

debt ceiling issue

The impending end of the US debt ceiling crisis also helped lift sentiment. The Senate passed a bill to raise the debt ceiling late Thursday night, sending the bill to President Joe Biden’s desk. It comes after the House of Representatives passed the Fiscal Responsibility Act on Wednesday, just days before the June 5 deadline set by US Treasury Secretary Janet Yellen.

Fear that the US could default on its commitments if lawmakers fail to reach a deal spooked some investors earlier in the week, though market watchers said many expected the deal to eventually pass.

markets now

Futures fell 0.6% to $1,983 an ounce.

While it fell by 0.55% to 1966 dollars an ounce.

On the other hand, it rose by 0.2% to 103,710 points.

While it rose by 2% to 75.77 dollars per barrel.

Texas crude rose 2% to $71.50 a barrel.