Global Market Square
The U.S. and eurozone stock markets closed higher Friday with a very volatile session to end the week, following a much weaker jobs report that only showed 266,000 new jobs created, a whopping 734,000 fewer than the one million expected. The report found that rising demand for workers “may have put upward pressure on wages,” making it difficult for markets to assess the future path of U.S. inflation. Additionally, there were 8.2 million fewer American workers employed during April than pre-pandemic levels in February 2020. The unemployment rate also rose to 6.1%, up from 6.0% in March.
However, investors seemed not too concerned with the impact of the jobs report; in our view, we predict that lower job growth may reduce inflation fears and staves off the likelihood of rising interest rates.
Eurozone Summary for May 7:
- Stoxx 600 closed at 444.57, up 3.55, or 0.80%.
- FTSE 100 closed at 7,129.71, up 52.54, or 0.76%
- Dax index closed at 15,399.65, up 202.91, or 1.34%.
Wall Street Summary for May 7:
- The Dow Jones Industrial Average closed at 34,777.76, up 229.23 points, or 0.66%.
- The Standard & Poor’s 500 closed at 4,232.60 up, 30.96 points, or 0.74%.
- The Nasdaq Composite Index closed at 13,752.24, up 80.85 points, or 0.88%.
- The Birling Capital Puerto Rico Stock Index closed at 2,646.91, up 80.85 points, or 3.15%.
- The U.S. Treasury 10-year note closed at 1.60%
- The U.S. Treasury 2-year note closed at 0.14%