- Wall Street experiences its best day in over two months, with the S&P 500 rising 1.3% and the Dow Jones Industrial Average increasing by 1.2%.
- The U.S. employment data shows a cooler-than-expected rise, suggesting easing inflationary pressures on the economy.
- Technology sector stocks, including Apple and Microsoft, contribute significantly to the market rally.
Wall Street celebrates its best day in months as cooler U.S. employment data suggests easing inflationary pressures, with technology stocks leading the rally.
Wall Street Sees Best Day in Over Two Months
Wall Street capped a choppy week of trading Friday with a significant rally, marking the best day for the stock market in over two months. Traders welcomed the cooler-than-expected U.S. employment data, interpreting it as a sign that inflationary pressures on the economy are easing. The S&P 500 rose 1.3%, its best day since late February, effectively erasing its losses for the week. The Dow Jones Industrial Average also saw a rise of 1.2%.
Cooler U.S. Employment Data Eases Inflationary Pressures
The nation’s employers added 175,000 jobs last month, a sharp decrease from the blockbuster increase of 315,000 in March, according to the Labor Department. This hiring tally came in well below the 233,000 gain that economists had predicted. Meanwhile, average hourly earnings, a key driver of inflation, rose less than expected. This modest increase in hiring suggests that the Federal Reserve’s aggressive streak of rate hikes may be finally starting to take a bigger toll on the world’s largest economy. This could move the central bank closer to lowering interest rates.
Technology Stocks Lead Market Rally
The Nasdaq composite ended 2% higher, reflecting strong gains by technology sector stocks, which accounted for much of the rally. Apple jumped 6% after announcing a mammoth $110 billion stock buyback. Microsoft also saw a rise of 2.2%. Other companies, such as Amgen and Live Nation Entertainment, notched gains after reporting strong quarterly results.
Conclusion
Overall, the cooler U.S. employment data and the strong performance of technology stocks have contributed to Wall Street’s best day in over two months. This suggests a potential easing of inflationary pressures on the economy, which could influence the Federal Reserve’s decisions on interest rates in the future.
