Wall Street Rises After Better Than Expected US Job Figures

The New York Stock Exchange advanced Thursday before an extended weekend, driven by a record number of jobs created in the United States in June and a larger than expected decline in the unemployment rate.

Its flagship index, the Dow Jones Industrial Average rose 0.36% to 25,827.42 points.

The high-tech Nasdaq finished at a record high of 0.52% to 10,207.63 points and the S&P 500 extended index rose 0.45% to 3130.01 points.

Like most American financial markets, Wall Street will be closed Friday, on the eve of American National Day, and will reopen on Monday morning.

Over the whole of this shortened week, the Dow Jones and the S&P 500 gained 4% and the Nasdaq 4.6%.

Despite a slight decline at the end of the session, the major New York indices benefited Thursday from employment figures in the United States released by the Labor Department.

The US economy created 4.8 million jobs in June – a record one month – thanks to the reopening of shops, bars and restaurants, which led to a larger-than-expected drop in unemployment.

The unemployment rate stood at 11.1% compared to 13.3% in May. Analysts expected a rate of 12.6%. However, this rate is still far from the historic low before the Covid-19 pandemic recorded in February (+ 3.5%).

“This is the second month in a row where employment figures are far better than expected,” said Adam Sarhan, founder of 50 Parks Investments.

According to the expert, this “supports the idea that the situation is improving not only on Wall Street but also for the general public.”

Among the other American indicators published on Thursday, the trade deficit widened by almost 10% in May, the American economy idling because of the pandemic, according to data from the Commerce Department.

Industrial orders rose sharply in May, ending two months of collapse, but they remain far from their pre-crisis level, according to figures released by the Commerce Department.

The market is now looking to the second quarter results for companies listed on Wall Street.

“The expectations are very low, which means that if the numbers are correct or even good, it could pave the way for an even higher rise in the indices,” warns Sarhan.

On the bond market, the 10-year rate on US treasury bills fell to 0.6693% around 20.35 GMT against 0.6758% Wednesday evening.



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