Global Market Square
The U.S. and European stock markets ended slightly higher Wednesday after Treasury Secretary Janet Yellen clarified her remarks, stating that she “did not foresee an inflationary problem.” Obviously, the asymmetrical message creates undue confusion, and Fed Chairman Jerome Powell has supported near-zero interest rates.
The ADP employment survey shows an increase of 742,000 private-sector jobs, with most of the gains coming from the Beach industries—booking, entertainment, airlines, cruises, and hotels. The sector has now benefited from eased COVID-19 restrictions and consumers’ measured return to more normalized spending behavior. With Thursday’s The initial claims for unemployment report will be issued Thursday, followed by the April jobs report Friday.
In our view, investors are very concerned, made evident in market reactions, the increased sensitivity to inflation concerns and the timing of the Fed’s policy normalization as the economy rapidly recovers. With the outlook for demand brightening as world economies reopen, commodity prices are moving higher.
Eurozone Summary for May 5:
- Stoxx 600 closed at 441.55, up 7.90, or 1.82%.
- FTSE 100 closed at 7,039.30, up 116.13, or 1.68%
- Dax index closed at 15,170.78, up 314.30, or 2.12%.
Wall Street Summary for May 5,
- The Dow Jones Industrial Average closed at 34,230.34, up 97.31 points, or 0.29%.
- The Standard & Poor’s 500 closed at 4,167.59 up, 2.93 points, or 0.07%.
- The Nasdaq Composite Index closed at 13,582.42, down 51.08 points, or 0.37%.
- The Birling Capital Puerto Rico Stock Index closed at 2,534.30, up 2.13 points, or 0.08%.
- The U.S. Treasury 10-year note closed at 1.59%
- The U.S. Treasury 2-year note closed at 0.16%