NFP day sees S&P 500 hit another record
|Heading into the close the FTSE 100 is flat, while on Wall Street the Dow, S&P 500 and Nasdaq 100 are all higher.
- US jobs report beats forecasts
- But mixed outlook on wages keeps stocks calm
- Renewed VIX declines point to quiet summer ahead
While stock markets have tempered some of their initial post-NFP excitement but the overall atmosphere is still a positive one. American traders already have one foot out the door ahead of the long weekend, with volumes seeping away even now, which points towards Monday as one of those days on trading floors when admin gets done or frivolous games are enjoyed by bored traders. Today’s NFP number is certainly moving in the right direction, gaining by yet another solid amount, but with earnings still only rising by a small amount and the headline unemployment rate actually ticking up there was no rush away from stocks and towards assets likely to benefit from an earlier than expected tightening of policy. Indeed, so far this afternoon small caps have been firmly out of favour while tech stocks are once again making great strides, a sign that the rotation back to growth from value still has some room to play out.
A fresh lurch down for the Vix also points to the future, in that we can expect the quiet trading of recent weeks to remain and if anything get quieter. Usually stocks weaken into the summer while volatility rises, but 2021 continues to confound with an environment that suggests the exact opposite. Despite expectations of a major selloff, one stubbornly refuses to arrive, even when the Fed appeared to invoke a major change in policy. Such a resilient market is great for most investors, but will not do much for bank trading revenues, something that may crop up as earnings season gets underway in two weeks’ time.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.