Editor
The U.S. added more jobs than market expectations, and the oil market indicators reached their highest level for the first time. Since late October
Last week, the U.S. job market saw the highest number of initial jobless claims for the first time since January. The estimated number of Americans filing claims for unemployment benefits has increased significantly, surpassing market expectations. The data released today show that U.S. jobless claims have reached 221.000 this month, surpassing March expectations of 214.000.
Additionally, investors have turned their attention to today’s job growth report for the previous months, which was highly expected given that the U.S. added more jobs in March. The report released by the Bureau of Statistics shows that the U.S. surpassed market expansion by miles. In turn, this is a strong indication of a cooling labor market, while the Fed shows no intention of lowering its interest rate policy.
The earlier reporting data shows that the labor market in the U.S. added 303.000 new jobs in the previous month, whereas the previous estimation for the same month was 210.000 jobs. The unemployment rate decreased to 3.8% from the previous month’s 3.9%, which has raised some concern at some level. Finally. Average earnings rose by 0.3% every month, meeting expectations. Overall, with increasing average earnings this month, the CPI report will be a crucial player in the market policy decision process.
As for U.S. Federal Reserve monetary policymakers, no signs of hesitating to stop the interest rate cuts this year have arrived. “It will be appropriate to lower our policy rate until we have greater confidence that inflation is moving sustainably down toward 2%.” The U.S. Federal Reserve chairman, Jerome Powell, repeated this on Wednesday. Overall, the Fed has persisted on the fact that the data won’t change the overall decision, and he added that at some point the central banks will proceed with their interest rates this year. Several surveys show marketers a +75% probability of a second-half interest cut in June. Followed by another month in September and another month in December.
Meanwhile, on Wall Street, as investors try to digest today’s data, Wall Street main indices edge higher ne hours after the release of the nonfarm payrolls for the previous month.
The S&P 500 benchmark was up by 0.85% to 5,189.80 basis points. Tech stocks revised some of the previous session losses. The Nasadq composite jumped by 1% to 16,208.90 basis points. The Dow Jones indices rose by 0.55% to 38,809.80 basis points. Additionally, the dollar index rose by 0.22% to 104.135 to reach its highest level for the past 30 days.
In other economic news, the oil market is the main topic of global energy news today. Pil prices reached their highest daily prices for the first time in the past 5 months. The West Texas Intermediate was up by 0.89% to a new record high this year of $87 per barrel. Bernt Crude oil skyrocketed, showing a 1% increase to $91 per barrel. By the end of this week’s session, it will be the second consecutive week that voting indices rise, with an explanation of a higher increase next week. Based on recent geopolitical events and tensions, the Peroluopm agency and oil cartels are expected to keep oil production tight, which could create a tighter energy market.
