And data from the Ministry of Labor showed that the unemployment rate in America rose to 3.7 percent, at its highest level in 6 months, while analysts had expected it to remain at the same level in April of 3.4 percent in April.
As for the average hourly earnings, it rose on a monthly basis by 0.3 percent in May, while expectations were that it would rise at the same rate as April of 0.4 percent in April.
The labor market numbers that appeared today gave mixed signals, as the increase in average wages slowed, and the unemployment rate jumped, which gives US Federal Reserve officials more reasons to pause interest increases temporarily.
On the other hand, the increase in new jobs was much higher than expectations, indicating that the labor market still enjoys strong flexibility, despite the tightening of monetary policy.
After the jobs data, the market’s expectations about the future of interest rates changed on the CME FedWatch index. Before the data was released, expectations were 75 percent that the Fed would prove the interest rate, but after its release, this percentage fell to 65 percent.
Market movements
The Dow Jones Industrial Average rose 541.40 point or 1.64 percent to 33,602.97 points, by 15:00 GMT, the Standard & Poor’s 500 index rose by 56.35 point or 1.36 percent to report 4,277.87 a point.
The Nasdaq Composite Index rose 140.08 point or 1.07 percent to 13,240.08 a point.
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