The U.S. Unemployment Rate (May) and U.S. Nonfarm Payrolls (May) data have been released at 8.30am(EST).
There is an increase in U.S. Nonfarm Payrolls, but the unemployment rate is higher at 3.7%.
The U.S. economy continued to crank out jobs in May, with nonfarm payrolls surging more than expected despite multiple headwinds, the Labor Department reported Friday.
Payrolls in the public and private sector increased by 339,000 for the month, better than the 190,000 Dow Jones estimate and marking the 29th straight month of positive job growth.
The unemployment rate was at 3.7% against the estimate for 3.5%, just above the lowest level since 1969.
Market like when the nonfarm payrolls increase in April
Market was up more than 1% when nonfarm payrolls increase in April.
The S&P 500 rose 75.03 points, or 1.8%, to 4,136.25. The Dow Jones Industrial Average rose 546.64 points, or 1.7%, to 33,674.38. The Nasdaq composite rose 269.01 points, or 2.2% to 12,235.41. The Russell 2000 index of smaller companies rose 41.07 points, or 2.4%, to 1,759.88.
TQQQ did close well on 05 May 2023 after the job data release.
Market will close higher since we have a higher nonfarm payrolls
Similarly, the market will like it as there have been quite a significant increase in the nonfarm payrolls in May.
The only concern here is the increase of unemployment rate, but it might be due to people are waiting to be hired.
Overall, I think Market should close higher, tech stocks should perform well.
TQQQ will close higher than its current.
I will look at $Meta Platforms, Inc.(META)$ $Apple(AAPL)$
Summary
I think with a positive and better than estimate nonfarm payroll can make the market trade favorably.
But this could open up the rate hike from Fed.
Appreciate if you could share your thoughts in the comment section whether you think the market will move to positive after today’s nonfarm payroll higher.
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Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Comments
I hear everyone says that the employment in the US is great - Is that true?
The Dow Jones Industrial Average was doing the happy dance, celebrating the boost from the nonfarm payrolls
More good data and news come out, the stock market will keep rising.
TQQQ was feeling all the good vibes after the job data release, strutting its stuff like a boss
The S&P 500 was like, "Hold my drink!" and soared to new heights when those nonfarm payrolls came in
The stock market had a party, complete with confetti and balloons, when the nonfarm payrolls went up