Wall Street rises as employment statistics calm inflation concerns

File Photo: Wall Street sign seen near the New York Stock Exchange (NYSE) in New York City, USA, May 4, 2021. REUTERS / Brendan McDermid

June 4, 2021

By Medha Singh and Shashank Nayar

(Reuters) – US stocks rose on Friday, led by technology stocks. Job growth was lower than expected, alleviating concerns that the economy was overheating, causing early tightening of monetary policy.

According to a close surveillance report by the Ministry of Labor, the number of non-farm payrolls increased by 559,000 last month, supported by vaccination and economic resumption following an unexpected slowdown in the labor market in April.

Economists surveyed by Reuters predicted 650,000 new jobs in May.

“The economy continues to recover, but it’s too early for the Fed to start either cutting (bond) purchases or raising rates,” said Michael Arone, chief investment strategist at State Street Global Advisors (Boston). It’s not a sign that it’s too much. “

Concerns that a strong economic recovery could lead to prolonged inflation and encourage the Fed to consider reducing crisis-level support have recently weighed on investors.

The S & P tech sector was strong 1.8% and other high-growth companies also rose as long-term Treasury yields fell. [US/]

Meanwhile, the interest rate-sensitive financial sector fell 0.4%, as did energy, materials and real estate.

Wall Street’s key index was expected to rise for at least the second straight week, with optimism about economic recovery, in many promising data this week. At 11:30 EST. The Dow Jones Industrial Average rose 112.89 points (0.33%) to 34,689.93 and the S & P 500 rose 30.40 points (0.73%) to 4,223.25. The Nasdaq Composite was up 188.22 points (1.38%) to 13,802.72.

AMC Entertainment reversed the course and surged 9.5% the day after Reddit’s darling completed the second stock sale this week.

Persing Square Tontin Holdings, led by billionaire William Acman, fell 10.4% in negotiations to buy 10% of Universal Music Group.

Meanwhile, parliamentary talks aim to come up with an infrastructure plan that was implemented while progressive Democrats were worried about President Joe Biden’s push for a bipartisan infrastructure agreement. Warned that it could block agreements that did not meet what it considered necessary.

With a ratio of 1.27 to 1 on the New York Stock Exchange and 1.32 to 1 on the Nasdaq, the number of stocks ahead of schedule exceeded the number of stocks that fell.

The S & P Index recorded 49 new highs and no new lows in 52 weeks, while the Nasdaq recorded 80 new highs and 10 new lows.

(Report by Medha Singh and Shashank Nayar in Bengaluru, edited by Maju Samuel)

Wall Street rises as employment statistics calm inflation concerns

Source link Wall Street rises as employment statistics calm inflation concerns

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