The recent US employment figures have sparked optimism in the stock market, with investors seeing it as a gold rush scenario where the economy grows without an increase in inflation. On Friday, the New York stock market experienced a significant rise following the release of fresh macro data. The S&P 500 index closed up 1.3 percent, reaching 5,128 points, which was described as the best increase since February by CNBC. The Dow Jones index rose 1.2 percent and the Nasdaq, which focuses on technology, increased by two percent.
The Helsinki Stock Exchange also closed higher on Friday, reflecting global market trends. The positive response from investors to the labor market report was compared to a gold rush scenario, signaling relief from inflationary pressures and expectations for interest rate cuts by the Federal Reserve. Weaker-than-expected US labor market numbers led investors to anticipate interest rate cuts by the Fed.
Tech companies like Apple contributed to the positive stock market performance on Friday with Apple’s stock rising six percent following announcements of a share buyback program and strong interim results. Other technology companies like Nvidia, Microsoft, Alphabet and Amazon also saw increases in their stock prices. Overall, there had been concerns about potential changes in monetary policy and rising interest rates to combat inflation but Friday’s market activity suggested that inflation might be easing paving way for potential interest rate cuts later in the year.