- The Dow skyrocketed on Friday, rising more than 300 points.
- The DJIA has virtually erased the 550-point plunge it suffered at the beginning of December.
- Here are the factors behind today’s massive upswing.
But the index surged by more than 200 points when the bell rang this morning, and the market only sped higher as the session progressed.
Here are five reasons why the stock market skyrocketed today.
1. This Dow rally is mostly about three things: Jobs. Jobs. Jobs.
Today’s Dow Jones rebound had one major trigger: the November jobs report.
Economists expected relatively-strong numbers, even after ADP’s disappointing private-sector data earlier in the week. But the Labor Department’s statistics were nothing short of spectacular.
- Jobs growth of 266,000, a 10-month high (expected: 187,000)
- Unemployment rate of 3.5%, tied for the best number since 1969 (expected: 3.6%)
- Year-over-year wage growth of 3.1% (expected: 3%)
The University of Michigan’s Consumer Sentiment Index also beat expectations, rising to 99.2 from 96.8 the previous month.
Altogether, today’s economic data suggest that the American consumer will end the year in good shape.
2. A top Trump official said the US and China are “close” to a trade deal after “intense” negotiations.
If the economy was Wall Street’s piece of cake, then a handful of trade-related headlines were the icing that metabolized the market’s sugar rush.
White House National Economic Council director Larry Kudlow said that the US and China are “close” to signing a trade deal. He maintained that President Donald Trump is prepared to “walk away” from a bad deal, but he did little to temper investor expectations.
“The deal is close. It’s probably even closer than in mid-November,”…