20.5 million lost jobs yet Wall Street surges
Major US stock indexes jumped on Friday and logged solid gains for the week after data on historic job losses due to the coronavirus crisis showed they were slightly fewer than feared.
Market sentiment remained upbeat despite terrifying economic data, historic job losses and no sign that the crisis is over. Part of the rebound is simply due to the heavy losses that occurred earlier this year but part is also due to speculation and investor optimism that the world economy will quickly resume its growth trajectory.
All 11 S&P 500 sectors were positive on Friday, led by the beaten-up energy index SPNY, which gained 4.3%.
A 2.4% gain in Apple (AAPL) shares also lifted the market after the iPhone maker said it will reopen a handful of US stores starting next week.
The US economy lost 20.5 million jobs in April, the Labor Department reported. Economists polled by Reuters had forecast payrolls diving by 22 million, but the decline still marked the steepest plunge since the Great Depression.
The Nasdaq posted its fifth straight daily gain, its longest such streak since December 2019.
The Cboe Volatility Index (VIX), known as Wall Street’s fear gauge, fell 3.46 points to 27.98, its first close below 30 since Feb. 26.
The Australian share market added 0.5% on Friday to conclude the week in the black. The ASX 200 closes at 5,391 points and futures contracts ended the session little changed.
Stocks have staged a sharp rebound since late March from the coronavirus-fueled sell-off, helped by massive monetary and fiscal stimulus. The tech-heavy Nasdaq on Thursday erased its 2020 declines and turned positive for the year.
Investors are now watching efforts by a number of states to spark their economies by easing restrictions put in place to fight the outbreak.
It will be interesting to see how equity markets react to further economic news and company earnings reports after weeks of gains.
In Australia, Prime Minister Scott Morrison announced a staged easing of coronavirus restrictions. NAB and Westpac will release surveys on business and consumer confidence respectively. Australia's market could also be impacted by the release of the monthly labour force figures on Thursday.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.