Saturday, 8 May 2021

US jobs disappoint, stocks hit record highs

Markets rose on Friday.

The S&P 500 rose 0.7 percent to a record high, the STOXX Europe 600 rose 0.9 percent to a record high and the Nikkei 225 rose 0.1 percent.

US stocks shrugged off a disappointing April employment report, which showed 266,000 jobs created last month.

“It was a disappointing read on job creation and brings into question the assumption that Q2 is going to carry-forward the positive momentum established at the beginning of the year,” Ian Lyngen, head of US rates at BMO, said in a note.

Still, Richard Flynn, UK managing director at Charles Schwab, said that “across economic metrics -- from GDP to retail sales to job growth -- boom conditions are evident”.

Also, JJ Kinahan, chief market strategist at TD Ameritrade, said: “It certainly takes the pressure off the Fed and takes an imminent rate increase off the table.”

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