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U.S. stocks may be out of direction after monthly employment reports

After hitting highs in three consecutive sessions, stocks could show a lack of direction in early Friday trading. Major index futures have shown significant fluctuations since the release of the monthly employment report, which the Ministry of Labor closely monitors.

The Ministry of Labor reported that while unemployment fell to low levels in the new pandemic era, employment growth in September was much weaker than expected.

According to the report, non-farm payrolls increased by 194,000 in September after an increase in 366,000 jobs, which was revised upward in August.

Economists expected employment to increase by 500,000 compared to the 235,000 additional jobs originally reported last month.

Despite much weaker employment growth than expected, the unemployment rate fell from 5.2% in August to 4.8% in September. The unemployment rate was expected to drop to 5.1%.

The unemployment rate has fallen more than expected and has fallen to its lowest level since reaching 4.4% in March 2020.

Data may lead to uncertainty about the outlook for monetary policy, as the Federal Reserve Board has shown that it needs to see further improvements in the labor market before it diminishes stimulus.

Andrew Hunter, senior US economist at Capital Economics, said: “The disappointing increase in non-farm payrolls of 194,000 in September is’decent enough to start declining asset purchases next month. “It will be counted as a thing,” he said.

“But along with signs of a sharp slowdown in activity growth, worsening labor shortages are putting serious upward pressure on wage growth, and the federal government over the next few months, he added. It seems to put officials in an uncomfortable position, “he added.

Stock prices rose significantly during Thursday’s trading, expanding the uptrend seen during Wednesday’s session. Following the plunge seen on Monday, the key average closed higher in three consecutive sessions.

The key average fell to its highest level in the afternoon trading, but remained strong positive. The Dow rose 337.95 points (1%) to 34,754.94, the Nasdaq rose 152.10 points (1.1%) to 14,654.02, and the S & P 500 rose 36.21 points (0.8%) to 4,399.76.

In overseas transactions, stocks market During the trading on Friday, the Asia Pacific region as a whole rose almost. Japan’s Nikkei 225 Index rose 1.3% and China’s Shanghai Composite Index rose 0.7% as trading resumed after a week’s vacation.

On the other hand, the major European markets are on a downward trend on the day. The UK’s FTSE 100 index is slightly below the unchanged line, while the German DAX index is down 0.2% and the French CAC 40 index is down 0.4%.

In commodity trading, crude oil futures rose $ 0.74 to $ 79.04 a barrel after rising $ 0.87 to $ 78.30 a barrel on Thursday. Meanwhile, gold futures have jumped from $ 17.30 to $ 1,776.50 per ounce after falling from $ 2.60 to $ 1,759.20 per ounce in the previous session.

On the currency side, the US dollar is trading at 111.64 yen, compared to 11.63 yen at the end of the New York stock exchange on Thursday. Against the euro, the dollar is valued at $ 1.1570 compared to yesterday’s $ 1.1552.

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U.S. stocks may be out of direction after monthly employment reports

Source link U.S. stocks may be out of direction after monthly employment reports

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