IG Market Comments - payrolls drive gains on Wall Street

Chris Beauchamp IG

Renewed labour market strength powered US stocks to new highs this afternoon, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

FTSE 100 lower while sterling briefly hits one-month high

“The pound managed to touch $1.28 this afternoon, continuing its recovery, but it was unable to hold its gains. The dollar briefly weakened in the wake of the payrolls report, but the return of solid job growth in the US meant that investors have resumed flocking to the greenback. Another slow news day in London meant that investors continued to take profits on the recent rally in the FTSE 100.”

S&P 500 hits new record

“Last month’s payrolls shocker wasn’t completely revised away, but the return of 200K+ jobs growth reminded investors about the strength of the US, at a time when political turmoil seems to be springing up almost everywhere else. An ideal combination of rising earnings, a strong economy and falling interest rates provides a compelling response to those still wondering why the US stock market seems to win out over its competitors.”

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Chris Beauchamp

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