WASHINGTON – Global stocks rallied on Friday to close near record highs, with oil and gold rising as the dollar fell after US employment data was strong but not as strong as expected, which It eased investor concerns that the Federal Reserve would soon curb monetary stimulus. .
US employers increased hiring in May and raised wages. But the nonfarm payroll rise of 559,000 jobs fell below the 650,000 forecast by economists polled by Reuters.
The pan-European STOXX 600 Index rose 0.39% after hitting an all-time high this week. The MSCI World All Country Index, which tracks stocks in 50 countries around the world, gained 0.71%.
A better-than-expected employment report would have raised concerns that the Fed could contemplate cutting its bond buying program and raising interest rates.
“This lower payroll number should keep investors’ concerns about inflation muted – as long as the job market remains depressed, it’s hard to see wage inflation rise any further,” said Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance in Charlotte. , North Carolina.
Zaccarelli added that there may be some lingering concerns about headline price inflation as the Fed keeps rates low for longer amid unprecedented fiscal stimulus.
Market rumors pointed to a stronger number, analysts said. US Labor Secretary Marty Walsh, in an interview with CNBC, welcomed a “good and solid” employment report and predicted that more Americans would go back to work in the coming months as more are vaccinated.
On Wall Street, Microsoft raised the S&P 500, followed by Apple, as the index gained 37.04 points, or 0.88%, to 4,229.89, marking a near-record jump of more than 12% this year. These technology companies account for more than 5% of the weight of the index for all MSCI countries.
Shares of Amazon.com Inc, Facebook, Alphabet’s Google and Tesla also rose.
The Dow Jones Industrial Average rose 179.35 points, or 0.52%, to 34,756.39, while the Nasdaq Composite added 199.98 points, or 1.47%, to 13,814.49.
The so-called “meme stocks” continued their wild run, with AMC Entertainment Holdings shares little changed, but on track to nearly double over the week.
Analysts said investors were watching the progress of proposed US infrastructure spending President Joe Biden rejected a new proposal from Republican Sen. Shelley Moore Capito, the White House said. They were scheduled to meet on Monday.
Benchmark 10-year notes last rose 20/32 in price to yield 1.5585%, from 1.627%, while euro zone bond yields fell as investors wondered about the policy of the Fed.
Oil rose, and Brent surpassed $ 72 a barrel for the first time since 2019 as an OPEC + supply discipline and demand recovery.
The dollar index fell 0.39% and the euro rose 0.36% to $ 1.2168. Strategists in a Reuters poll were almost evenly divided on the short-term direction of the dollar.
New orders for US-made products fell more than expected in April as a global semiconductor shortage weighed on the production of motor vehicles and electrical equipment, appliances and components.
Investors have been analyzing economic data to assess whether inflation could force the Fed to change course.
“Will prolonged low-wage inflation allow for a longer period of low headline price inflation to reign? Or will a Fed that is slow to raise rates, because it is concerned about a weak labor market, create a higher-than-expected headline inflation regime? “said Zaccarelli of the Independent Advisor Alliance.
Spot gold added 1.1% to $ 1,890.65 an ounce after a 2% drop on Thursday, its biggest since February.
(Katanga Johnson Washington Report; Edited by Jonathan Oatis and David Gregorio)