Strong Jobs Data Pushes Dow Jones Towards All-Time High
The U.S. Stock markets jumped on Friday as strong jobs data increased risk appetite among long term investors. Investors are confident that the U.S. economy will report strong growth, backed by strong jobs market. As the U.S. economy depends on consumer spending, strong job market would ensure higher consumer spending in the coming quarters. In June, the U.S. economy added 222,000 jobs. The biggest gains were witnessed in healthcare, professional services, restaurants and government departments, the Labor department report informed.
The stock markets reported decent gains on Friday with Dow Jones rising nearly 100 points and Nasdaq Composite firmed up by 1.2 percent. Technology, Banking, Retail and HealthCare stocks were trading strong. The Federal Reserve is expected to raise interest rates one more time this year. This will have a major impact on markets and real estate sector. Analysts were expecting the jobs market to add 179,00 jobs in June, as per CNBC survey. Average earnings increased by 0.2 percent.
"If we're going to have wage growth, it's got to come from somewhere. Either from employees being worth more to employers or through lower profit margins," said Jason Thomas, chief economist at AssetMark.
The stock market indices are hovering around their all-time highs. The strength in the U.S. market has also helped emerging markets. Investors are confident about economy’s strength for the next two quarters. Workforce shortage could also lead to rise in wages for employees. While this would put strain on margins of businesses, it will also lead to higher consumption.
"The continued vitality in the U.S. labor market means that the Fed is on track to begin shrinking its balance sheet in September and to raise rates again in December," said Nariman Behravesh, chief economist at IHS Markit in Lexington, Massachusetts.
Moody’s Investor Service recently downgraded South...Read More
A promising study has suggested that broccoli can...Read More
South Africa faced a major setback as Moody’s...Read More
An iconic penguin species found on the New Zealand...Read More
Alphabet’s driverless car division Waymo LLC has...Read More
Cybersecurity officials in United Kingdom have...Read More