US Stocks Climb on Strong Jobs Data

0
115

US Stocks Climb on Strong Jobs Data

On Friday, US stocks climbed after employment data showed a strong pace of job creation in January and wages of workers picked up.

US gold prices and treasury bonds sank while the dollar climbed against the major currencies as investors bet the stronger-than-expected jobs data would keep the Federal Reserve on course to increase interest rates this year. Signs of sustained US growth also lowered demand for assists seen as safe havens.

According to The Wall Street Journal, the Dow Jones Industrial Average climbed 0.2% or 43 points to 17,930 while the S&P 500 rose 0.3% or 6.2 points to 2,069. The Nasdaq Composite gained 0.2% or 11 points ot 4,776.

Chief investment officer of Wells Fargo Private Bank, Erik Davidson said, “Until recently this sort of good news might have been interpreted as bad news because of its implications for the Fed. The punch bowl is going away but the market is saying ‘we can throw our own party, we can buy our own beer, we don’t need the Fed’s punch bowl anymore.’”

US non-farm payrolls rose by 257,000 jobs in January, as reported by the Labor Department on Friday. This topped the 237,000 jobs that had been forecast by economists. The government said that job creation was far stronger in the past months than it had been estimated previously.

USA Today reported that the Nikkei 225 of Japan added 0.8% to 17,648.50 while the Hang Seng of Hong Kong dropped 0.4% to 24,679.39.

In Europe, the tensions between Greece’s new left-wing government and the European Central Bank were pressuring the stock as a threat of Greek default weights on minds of investors.

The DAX of Germany lost 0.7% while the FTSE 100 dropped 0.08% in Britain.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com