- The Nasdaq Composite COMP, +1.66% advanced 1.7% to 7,742.
- The S&P 500 SPX, +1.05% rose 1% to end near 2,873.
- The Dow Jones Industrial Average DJIA, +1.02% climbed 263 points, or 1%, to finish around 25,983.
Wall Street was adding the week’s gains on a fourth straight daily bullish close despite the weaker-than-expected jobs report, which, only added to expectations that the Federal Reserve would carry out rate cuts as soon as July.
“While we were expecting jobs growth to slow down this time, few could have predicted such weak payroll numbers,” analysts at ING Bank said, adding, “the poor reading only cements market expectations for Fed rate cuts ahead.” The U.S. economy added 75,000 jobs in May, falling short of the 185,000 expected by analysts.
Subsequently, the S&P 500 rose 1% to end near 2,873 while the Dow Jones Industrial Average (DJIA) added 263 points, or 1%, to finish around 25,983. The Nasdaq Composite COMP, +1.66% advanced 1.7% to 7,742. The Dow snapped a six-week losing streak. Meanwhile, on trade, there were reports that theU.S. and Mexico were making progress, boosting investor spirits, Donald Trump said he was optimistic on the prospect of a deal while helped keep optimism alive.
“There is still time for the Trump administration to pull back from the brink ahead of G20 meetings at the end of this month – or to be pulled back by resistance from Congress,’
analysts at RBC Economic Research said.
DJIA levels
On a technical basis, the DJIA index extended its run of daily bullish sticks and settled above the 61.8% Fibo retracement level. The opening bullish gap to 26070s was pierced and bullish eyes land on the 78.6% Fibo of the recent range, with a confluence of the 12th April gap. On the flipside, below the 200 D EMA and then the 25200 level, as being around the 11th March swing lows, on a break of 25000, bears can look towards 24500s and then 50% of the upside run made at the end of Dec at 24150.
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