Actions jumped Friday after the pay on the pay in April non -agricultural beat the expectations of Wall Street, pushing the S&P 500 to its longest series of gains in more than two decades. The index increased by 1.5%, putting him on the right track for his ninth consecutive victory, a sequence not seen since November 2004.
The Dow Jones jumped 552 points (a gain of 1.3%) and the Nasdaq added 1.7%. This rally has erased the losses that the S&P had brought since April 2, the day that President Donald Trump has reintroduced the prices he described as “reciprocal”. The Nasdaq had already rebounded the day before.
The hiring figures for April arrived hot. The American economy added 177,000 jobs, exceeding 133,000 estimates by Dow Jones. It was still a drop compared to the 228,000 in March, but no one expected this kind of force after weeks of recession. The unemployment rate remained at 4.2%.
The fears of the Wall Street recession are unleashed
Chris Zaccarelli, director of investments at Northlight Asset Management, said“The markets pushed a sigh of relief this morning while the data on the jobs presented themselves better than expected.” Chris warned that fears of the recession are not on the other hand, but “the dynamics of the purchase of the DIP can continue – at least until the price break is exhausted”.
Investors were already optimistic before the data affects. China has suggested that this could start from commercial negotiations with the United States, but clearly made discussions occur if Trump cancels all unilateral prices. Chinese officials said:
“If the United States wants to speak, it should show its sincerity and be ready to correct its bad practices and cancel the unilateral prices.”
Later, the Wall Street Journal reported that Beijing was open to discussions.
Apple’s stock dropped by 3% after the company said a Miss in its service division for the second quarter. Apple also said that it expects $ 900 million in new costs this quarter due to prices. Amazon did better. Its profits from the first quarter beat the projections, but the company published a pure forecast, citing “prices and commercial policies” as a threat to growth.
Zaccarelli added: “We have already seen how the financial markets will react if the administration is progressing with its initial price plan.” He said that if Trump does not change course before the expiration of the 90 -day break in July, the markets will probably drop as they did in early April.
Actions have climbed since Trump announced last month that his new prices would be reduced to 10% for most countries for 90 days. This break gave investors a certain breathing room. Strong gains have also helped. The S&P 500 is now in pace for a gain of 2.3% this week. The DOW is expected to increase by 2.5% and the NASDAQ increased by 2.7% of the week on the date.
The markets are still not so stable
Barclays analysts are not convinced that the market can continue to move like that. The bank said that the market is now back to the place it was before the prices of Trump's “release day”, but the increase in discussions on the recession makes this rebound. Emmanuel Cau wrote Friday:
“Revenues are due for the moment, but more companies seem cautious about economic prospects, with revised advice and intentions.
Lindsay Rosner, head of multisectoral fixed income titles in Goldman Sachs, said that work data gives the federal reserve “of patience”. But she also said that the prospects were vanishing and that the Fed could return to rate drops later in the year.
Seema Shah, global strategist in chief management of main assets, said::
“We can push recession problems to one month.
Seema said weakness may not appear in the figures for a while, and that the next Fed cut could be pushed in the third trimester. She said there was no reason to reduce rates now while inflation is higher than the target and that consumer strength is always solid.
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