- Dow bulls piled into the index as jobs data and sentiment showed a healthy domestic economy.
- A goodwill gesture from China also lifted the stock market, raising hopes of a last-minute breakthrough in trade talks.
- Goldman Sachs powered the Dow Jones higher with a 3% rally on hopes of a lower 1MDB settlement than Wall Street anticipated.
A 335-point surge in the Dow Jones helped the index rocket back closer toward record highs on Friday.
The stock market rally was powered by jobs data, consumer sentiment, and optimism around the state of trade talks between the US and China. Donald Trump and Xi Jinping both have a vested interest in making a deal, as China’s tariff reduction gift on US soybeans shows.
Despite the optimism, analysts at Nordea believe the jobs data could have peaked. They warn that underlying indicators hint at upcoming weakness.
Dow Jones Rallies as Data and Trade Fuel Optimism
All three of the major US stock market indices gained around 1% to close the week, as Friday’s jobs report sent the Dow Jones, S&P 500, and Nasdaq climbing back toward record highs.
The Dow Jones Industrial Average jumped 335 points or 1.12% to 28,012.79.
The S&P 500 rose 29.74 points or 0.95% to 3,147.17.
The Nasdaq split the difference, gaining 89.1 points or 1.04% to reach 8,659.80.
Unsurprisingly given the rally in the stock market, the price of gold was under severe pressure, losing more than 1.2% as investors piled into risk assets. Crude oil rallied around 1.3% after OPEC committed to support prices with sustained cuts.
Interestingly, the safe-haven Japanese yen mounted a substantial comeback midday, suggesting not everyone in the marketplace trusts this rally.
Dow Rejoices as Payrolls & Sentiment Soar
A big jump in non-farm payrolls headlined what appears to be an impressive jobs report that also featured a decline in the unemployment rate…