• Focus News EU is an independent media based in Europe
  • providing the world's latest news, the definitive source for independent journalism from every corner of the globe.

Wall Street Surges on Striking US Jobs Report

Business Olivia 4weeks ago (06-06) 11Views

These Companies Are Hiring During the CCP Virus Crisis

Businesses shut down across America during the CCP virus pandemic, leading to millions of layoffs and furloughs. The U.S. job market is attempting to emerge from its worst downturn in modern memory. But it’s not all doom and gloom on the employment front. There are still companies hiring amid the economic calamity as changing consumer habits compel employers in a wide variety of industries to stock up on talent. Grocery and Retail The Kroger Company Kroger and its subsidiaries have been expanding, like other major grocery store chains during the pandemic. The second largest grocer in the United States is still looking to hire about 6,800 people from coast to coast to keep up with consumer demand. Kroger says it has hired more than 100,000 workers since mid-March and has…

Wall Street Surges on Striking US Jobs Report

U.S. stocks staged a respectable rally Friday, surging on a surprisingly upbeat May jobs report, while safe havens like bonds and gold gave up gains.

The moves extended a stock recovery that has seen Wall Street claw back many of the deep losses driven by the economic fallout from the pandemic.

All three major equities indexes climbed 2 percent or more, with the tech-heavy Nasdaq briefly hitting a new all-time high before ending the session a sliver below.

The benchmark S&P 500 is almost back to where it was earlier in the year, closing 5.7 percent off its record high.

By closing bell, the Dow Jones Industrial Average rose 829.16 points, or 3.15 percent, to 27,110.98; the S&P 500 gained 81.58 points, or 2.62 percent, to 3,193.93; and the Nasdaq Composite added 198.27 points, or 2.06 percent, to 9,814.08.

Wall Street Surges on Striking US Jobs Report The Nasdaq Composite Index (IXIC) between August 2019 and June 2020. (Tradingview)

The U.S. economy added a remarkable 2.5 million jobs last month, rebounding from April’s record 20.7 million drop and pushing the unemployment rate down to 13.3 percent. Analysts expected unemployment to soar to a historic 19.8 percent.

“The numbers are a huge surprise to the upside,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.

“It would suggest a further confirmation the economy is coming back online,” Arone added. “This is a strong signal that the effects are temporary and that the economy is improving.”

Chief White House economic advisor Larry Kudlow said the strong rebound was not that surprising.

“Preceding this number were a number of ‘green shoots,’ as we call them in economics or finance,” Kudlow said at a White House press conference Friday, referring to signs of economic recovery.

“Housing applications for new homes are skyrocketing,” Kudlow said. “New businesses and new business applications are skyrocketing. So we’ve seen a lot of pieces of evidence.”

Kudlow said the key to the strong jobs number is that many of those who were temporarily laid off have returned to work. He credited the administration’s small business relief loan scheme, the Payroll Protection Program (PPP), which offers businesses forgivable loans if they don’t lay off workers for a period of time.

Wall Street Surges on Striking US Jobs Report

“The Payroll Protection Program has kept people on temporary call, kept them furloughed but they knew they were going to come back,” Kudlow said, adding that the PPP has distributed $510 billion and “has probably saved as much as 50 million jobs.”

U.S. Treasury yields rose on Friday’s strong jobs data, a move that signals greater investor appetite for risk. It also gives a boost to interest rate-sensitive banks, with the S&P 500 Banks index ending the session up 4.9 percent.

The price of gold, a classic safe haven sought out by investors in times of turmoil, dropped 2.5 percent for its biggest one-day slide since March.

Wall Street Surges on Striking US Jobs Report Gold spot price (XAUUSD) between March-June 2020. (Tradingview)

President Donald Trump at a press conference Friday touted the rebound as being better than a V-shaped recovery, which refers to a sharp economic surge after a plunge.

“We’re opening and we’re opening with a bang and we’ve been talking about the V,” Trump said, adding, “This is better than a V. This is a rocket ship.”

The president also cheered the strong jobs number in a series of tweets Friday morning.

“It’s a stupendous number. It’s joyous, let’s call it like it is. The Market was right. It’s stunning!” Trump wrote in a tweet.

Investors are divided between those who believe the dip in economic activity has been priced in, and those who think of the surge in stocks as a relief rally that will soon run out of steam.

Sixty-seven percent of investors in a survey cited by The Wall Street Journal believe the S&P 500’s next 10 percent move will be down.

“Long may it last,” Arone said of the equities rally.

Reuters contributed to this report.

Focus News: Wall Street Surges on Striking US Jobs Report

US Will Reevaluate Intelligence-Sharing with Canada if Huawei Participates in Country’s 5G: State Department

The U.S. State Department has said intelligence-sharing with Canada will be reevaluated if Chinese telecom giant Huawei is allowed to take part in building the country’s 5G wireless network. Canada remains the only member of the Five Eyes intelligence alliance that has not yet taken a clear position on whether to block Huawei from its national 5G infrastructure, though the federal government has been reviewing the issue for nearly two years. “We’ll have to make an assessment if we can continue sharing intelligence with countries who have Huawei inside their most sensitive technology, in their most sensitive national security areas,” State Department spokesperson Morgan Ortagus told CBC News on June 4. During a press conference on June 4, Prime Minister Justin Trudeau did not respond directly when a reporter asked…

The article is from the Internet, and the content does not represent the position of this website.丨This website usesBY-NC-SAagreement for authorization
please indicate the link for reprint:Wall Street Surges on Striking US Jobs Report
Likes (0)