How I would comprehend the labor data released Friday (02 June)
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 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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