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8 May 2015
US stocks rally after jobs report
FXStreet (Mumbai) - The stock markets in the US advanced on Friday, while the bond yields tumbled after the jobs report showed the labor market is likely to continue improving at a pace that would not lead to early rate hike in the US.
Stocks gain as Rate hike bets fall
The Dow Jones Industrial Average gained 1.33% to 18162.50. The S&P 500 rose 1.18%, to 2112.70. The Nasdaq Composite rose 1.16% to 5002.89. The S&P 500 VIX dropped 12.43% to 13.25.
The Labor Department said the U.S. added 223,000 jobs in April. The previous month’s print was revised lower to 85,000 which pushed the net job additions in the last two months to -39,000. Consequently, the rate hike expectations were pushed out. Fed fund futures now price about a 20% chance of a rate hike at the September 17 FOMC meeting, compared to about 26% yesterday. This led to a fall in the Treasury yields and an uptick in Gold prices.
Meanwhile, European markets rose. London’s Ftse 100 shot 1.9% higher after Prime Minister David Cameron’s Conservative Party swept to an unexpectedly strong victory.
Stocks gain as Rate hike bets fall
The Dow Jones Industrial Average gained 1.33% to 18162.50. The S&P 500 rose 1.18%, to 2112.70. The Nasdaq Composite rose 1.16% to 5002.89. The S&P 500 VIX dropped 12.43% to 13.25.
The Labor Department said the U.S. added 223,000 jobs in April. The previous month’s print was revised lower to 85,000 which pushed the net job additions in the last two months to -39,000. Consequently, the rate hike expectations were pushed out. Fed fund futures now price about a 20% chance of a rate hike at the September 17 FOMC meeting, compared to about 26% yesterday. This led to a fall in the Treasury yields and an uptick in Gold prices.
Meanwhile, European markets rose. London’s Ftse 100 shot 1.9% higher after Prime Minister David Cameron’s Conservative Party swept to an unexpectedly strong victory.