US Stocks Rise After Non-Farm Payrolls Report, Sheriff Adel (Washington)

Sheriff Adel (Washington)

US stocks rose in trading on Friday after the non-farm payrolls report revived hopes that the Federal Reserve would cut US interest rates soon, so its three main indexes jumped, and the Dow Jones Industrial Average added 450 points to its value at the start. of today’s trade.
In the last trading days of the week, the points added to the world’s most famous index represented an increase of 1.18%, while the S&P 500 index rose, which mainly reflecting sectors of the American economy, 1.26%, while gains in the Nasdaq index, which is full of technology companies, reached almost 2%.
On the weekly level, all three indices were in the green zone, as the Dow Jones rose 1.14%, and the Nasdaq by 1.43%, while the S&P rose only 0.55%, which despite the poor start to the trading week on Monday and Tuesday.
The non-farm payrolls report released in Washington on Friday showed that US companies added 175,000 jobs in April, less than the 240,000 jobs expected by economists surveyed by Dow Jones.
The unemployment rate rose to 3.9% from 3.8% the previous month, according to the Bureau of Labor Statistics, and wage numbers were lower than expected, all signs of a decline in stubborn inflation in the economy. biggest in the world.
Emily Rowland, chief investment strategist at John Hancock Investment Management, said: This has already eased investor fears that the economy could overheat or accelerate again, which is re- encouraging hope for lower interest rates. That’s why interest rates fell, bonds rose, which drove stock markets higher. Bad news for the jobs market means that the Fed may be able to start cutting rates as early as this year.
After weaker-than-expected job growth in April and modest wage gains, traders revised their expectations for the Federal Reserve’s decisions, to reflect two cuts totaling 0.50%, before end of the year, according to the Federal Reserve Monitor tool of the Chicago Mercantile Exchange (CME). Markets are currently expecting an interest rate cut of 0.25% at the Federal Reserve meeting next September.
Interest rates also fell after the staff report, with the 10-year Treasury yield briefly falling below 4.5%, which contributed to a rise in shares of major technology companies, which are highly sensitive. on interest rate expectations. Shares of artificial intelligence leader Nvidia and AMD rose more than 3%, while Microsoft and Meta Platforms rose 2% each, while the information technology sector rose to a record. -target S&P by 3%.
Strong business results from the top companies in the Dow Jones Industrial Average added to Friday’s gains, with Apple shares rising nearly 6% after it announced a $110 billion share buyback, beating expectations the income and profits, in the last quarter.