The recent US employment figures have sparked optimism in the stock market, leading to a gold rush scenario where the economy grows without accelerating inflation. The New York stock market saw a significant rise on Friday following fresh macroeconomic data, with the S&P 500 index closing up 1.3 percent, marking its best performance since February. The Dow Jones index and the Nasdaq also saw increases of 1.2 percent and two percent, respectively.
Investors viewed the recent labor market report as a relief from inflationary pressures and expectations for interest rate cuts by the Federal Reserve. According to Schroders Director of Americas Operations Adam Farstrup, the stock market has been experiencing nervousness recently amid concerns about the Fed’s monetary policy. However, signs of easing inflation on Friday suggested that the Fed may cut interest rates this year.
The Helsinki Stock Exchange also closed higher on Friday, adding to the positive trading week on Wall Street and other global stock exchanges. Tech giant Apple’s stock rose six percent on Friday, announcing a $110 billion share buyback and reporting better-than-expected interim results. Other tech stocks like Nvidia, Microsoft, Alphabet, and Amazon also experienced gains on Friday.
Overall, investors remain optimistic about the potential for interest rate cuts and the market outlook in the coming months due to weaker-than-expected US labor market numbers that raised investor expectations for interest rate cuts by the Federal Reserve.
