The Nasdaq advanced, after the disappointing economic data appeared to make a case for monetary policy to stay on hold and interest rates to stay low, supporting tech and growth stocks.
employers brought back just 266,000 jobs in April, whereas a gain of at least 1 million had been expected.
economy remained 8.2 million payrolls short of pre-pandemic levels, and both the unemployment rate and labor force participation are still off from their February 2020 levels.
Federal Reserve Chair Jerome Powell has suggested he would want to see a “string” of strong payroll gains totaling more than 1 million before the central bank considers adjusting its ultra-accommodative monetary policy posturing.
“The smaller rise in payrolls should at least assuage some concerns around the Fed policy outlook,” Seema Shah, Chief Strategist at Principal Global Investors, wrote in an email Friday morning.
Heading into the report, investors had been contemplating improvements in other economic data with both optimism about the post-pandemic rebound and trepidation over the implications for monetary policy, with persistently strong data likely to bolster the case for the Fed to ease up on policies that had supported the recovery as well as asset prices.
The information technology, communication services and consumer discretionary sectors led gains in the blue-chip index, outperforming as Treasury yields retreated.
“On a day like today, you’re seeing that pullback in the 10-year rate, you’re seeing that pullback in the U.S.
But I do think we’re going to see this short-term reaction where it’s a bounce-back between value and growth, defense and offense, and I think on a day like today you’re seeing more of that defense.
employers brought back just 266,000 jobs in April, sharply missing consensus economists’ expectations for a rise of 1 million, according to Bloomberg data.
In the goods-producing sector, manufacturing jobs unexpectedly dropped by 18,000 whereas a rise of 54,000 had been expected, marking the first net decline in these payrolls since January.
Meanwhile, leisure and hospitality jobs rose by 331,000, adding to a gain of 206,000 payrolls in March and 413,000 in February.
employers hired far fewer workers than expected in April, with nonfarm payrolls increasing by only 266,000 jobs last month after rising by 770,000 in March.
Investors suggested the bullish response to disappointing economic data reflected hopes that it may push back the timing for tapering the Federal Reserve’s asset purchases and plan for rate hikes, moves that could weigh on the buoyant mood on Wall Street.
Although Kulicke and Soffa just reported earnings on May 5, it previewed better-than-expected earnings back on April 19, owing to the incredibly strong demand for semiconductors and LED screens across a wide range of industries.
President Joe Biden on Friday addressed the April jobs report, which fell well below analysts’ expectations, arguing the report is indicative of the long-term nature of the economic recovery, saying he expects improvement to be “a marathon,” rather than a “sprint.” “You might think that we should be disappointed, but when we passed the American Rescue Plan, I want to remind everybody, it was designed to help us over the course of a year — not 60 days, a year,” Biden said.
European Union leaders have cranked up their criticism of the US call to waive Covid-19 vaccine patents, arguing on Saturday that the move would bring no short or mid-term relief.
The data eased worries the Federal Reserve would reduce its massive stimulus program anytime soon and was seen as helping President Joe Biden push through his plans for trillions of dollars in new spending on infrastructure and education.
The Dow and S&P 500 hit record closing highs on Friday while registering gains for the week, and the Nasdaq recovered after U.S.
The data eased worries the Federal Reserve would reduce its massive stimulus program anytime soon and was seen as helping President Joe Biden to push through his plans for trillions of dollars in new spending on infrastructure and education.
In addition to being named the first captain in Mets history, Hernandez earned a record 11 consecutive Gold Glove awards from 1978-1988 as a first baseman, batted over .300 in six different seasons, and finished with a lifetime .296 batting average and a career on-base percentage of .384.
Hospitals, law enforcement, the government, every corporation — the entire spectrum of human institutions that constitute civilization now deeply rely on connectivity to function.
In separate announcements earlier on Friday, China Mobile Ltd; China Unicom and China Telecom Corp said they expect the NYSE to notify regulators of their delistings after the companies unsuccessfully appealed the move.
One thing to keep in mind though is that states are reopening at different rates, and it may take some time for those new jobs to hit the books, meaning that it may not be until next month’s jobs report that we see some more of the added jobs we were expecting this time around.