Wall Street Close: US benchmarks were firmly bid again
- Dow Jones unofficially closes up 522.55 points, or 2.03%, at 26,265.20.
- NASDAQ unofficially closes up 68.36 points, or 0.71% , at 9,676.73.
- S&P 500 unofficially closes up 40.73 points, or 1.32%, at 3,121.55.
US benchmarks were firmly bid again mid-week with risk assets rallying strongly again as the optimism about economic recovery keeps gathering momentum.
Easy monetary conditions are also helping to keep the bid alive and the news that German Chancellor Merkel's coalition reached a deal on german stimulus package – Bloomberg was beneficial. Markets in Europe are also benefiting from expectations of further action from the ECB.
Meanwhile, the good news rolled over into the US session as data proved to be better than expected, or rather, not as bad. Markets also looked through geopolitical tensions. Consequently, the Dow Jones unofficially closed up 522.55 points, or 2.03%, at 26,265.20 while the NASDAQ unofficially ended up 68.36 points, or 0.71% at 9,676.73. S&P 500 unofficially added 40.73 points, or 1.32%, to close at 3,121.55.
US ADP surprised
ADP job losses were much less than expected in May. Jobs fell 2.76m compared with expectations of 9m.
"This could point to a shallower than anticipated downturn in the labour market, but it is quite another challenge for employment to recover from here. The euro area April unemployment rate rose to 7.3% from 7.1%, way below the 8.2% expected. But Eurostat does not count furloughed workers as unemployed or those who lost their jobs due to the lockdowns but unable to look for work," analysts at ANZ Bank explained.
DJIA levels
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
