Wall Street rises on solid US jobs data

April 11, 2023 (MLN): Wall Street stocks mostly rose on Monday following a mixed session on Asian bourses. This came as the market digested solid US jobs data released by the Labor Department for March, showing that the economy added 236,000 jobs last month.

While this figure was slightly less than expected, the unemployment rate inched down to 3.5 percent. Analysts considered the jobs report solid and suggested that it could lead to further Federal Reserve interest rate hikes, depending on additional upcoming data, as APP reported. 

After sustaining early losses, US equities climbed back as the session progressed. Both the Dow and S&P 500 finished positive, while the Nasdaq ended slightly down. European bourses and Hong Kong remained on vacation, dampening the trading volume in the United States.

However, the market was broadly cautious ahead of this week's heavy calendar, including crucial consumer price and producer price reports, as well as data on March retail sales.

Furthermore, the first-quarter corporate earnings season begins in earnest, with reports due from several of the largest banks including JPMorgan Chase and Citigroup. Investors are said to be "a bit anxious" ahead of what is expected to be a lackluster earnings season in light of "premium" equity valuations.

In Asia, Tokyo, Seoul, Mumbai, Bangkok, and Taipei rose, while Shanghai, Singapore, and Jakarta turned negative.

A note from Oxford Economics predicted that the US Fed would stick to a plan to lift interest rates again when it next meets, as the latest employment data showed "job creation remains robust and wage growth is above the rate that's in line with the central bank's two percent (core) inflation target." This outlook helped push the dollar higher against other major currencies, while oil prices retreated.

Copyright Mettis Link News