STOCKS JUMP AND YIELDS FALL ON HOPES U.S. LABOR TIGHTNESS EBBING
On Friday, Wall Street joined global markets in trading higher following news that U.S. nonfarm payrolls grew less than anticipated last month. This development eased concerns among investors that tight labor markets and persistent inflation might delay any rate cuts by the Federal Reserve.
As a result, Treasury yields and the dollar both declined after the Labor Department reported that nonfarm payrolls increased by 175,000 jobs in April. While this figure was still healthy, it fell short of expectations, which were for an increase of 243,000 jobs. Additionally, the unemployment rate rose to 3.9%, contrary to expectations of it remaining steady at 3.8%. Furthermore, wage growth showed signs of cooling, indicating that compensation demands may not be as significant of an inflationary driver. Average hourly earnings only rose by 0.2%, which was less than forecast and below March's growth rate of 0.3%.
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