|AUTHOR: Jason J. Roque, CFP®, APMA® TITLE: Investment Adviser Rep – CCO TAGS: S&P 500|
Markets charged back late in the week. This led to weekly gains, but does the market have staying power?
The holiday lengthened weekend did not result in volatile markets Tuesday. The S&P 500 was virtually unchanged for the day. ISM Manufacturing improved more than expected, likely keeping markets calm as they wait for jobs data.
Wednesday’s market movement was muted, much like Tuesday. The S&P 500 gained 0.14% on the day. Market participants seemed as though they are waiting for the results of the monthly jobs report due out Friday.
Markets were more active on Thursday as data began to flow. Jobless claims fell below 400K for the first time since the start of the pandemic and services data jumped dramatically. While this was good news, the S&P 500 shed 16 points on what this could mean for the jobs report.
The May jobs report dropped on Friday morning, showing unemployment has fallen to 5.8%. More importantly only 492K private nonfarm payrolls were added in May. This was a ‘bad news is good news’ situation as the S&P 500 added 36 points on the day. The softer data eases concern over potential inflation.
The S&P 500 is with in 3 points of its all-time high set at the start of May. With earnings season behind us and economic data for May mostly out, it may be tough for the index to set record highs in the coming weeks as headline risk will carry more weight.
~ Your Future… Our Services… Together! ~
Your interest in our articles helps us reach more people. To show your appreciation for this post, please “like” the article on one of the links below:
FOR MORE INFORMATION:
If you would like to receive this weekly article and other timely information follow us, here.
Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long-term holding strategy is the best strategy in any market environment.
Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.