Wall Street soars as USA jobs boom

A street sign Wall Street is seen outside New York Stock Exchange in New York City New York

A street sign Wall Street is seen outside New York Stock Exchange in New York City New York

The job market is still robust. But some investors have anxious that that process could push long-term rates higher at a time when the economy was slowing.

Powell, in remarks to the American Economic Association, soothed market nerves with assurances that the central bank is sensitive to risks that worry investors and is not on a preset path of interest rate hikes. All three of those events addressed issues that investors have been particularly concerned about over the past several months.

The Dow and Nasdaq's respective climbs added to gains earlier in the day that followed news that nonfarm payroll employment in the USA increased by 312,000 in December, well above consensus estimates of 177,000 jobs created. Eastern time. The Dow gained 498 points, or 2.2 per cent, to 23,185.

Every sector of the market was up Friday.

The S&P 500 Index jumped 3.4 per cent on Friday in response, though the stock gauge is still off about 14 per cent from its September peak. Germany's Dax closed up by 3.3 percent.

Benchmark 10-year Treasury notes last fell 32/32 in price to yield 2.6641 percent, from 2.553 percent late on Thursday.

The Fed is "listening sensitively" to the market signals, as well as data showing that inflation rates remain relatively muted, he added. "This proves I was correct".

Federal Reserve Chairman Jerome Powell on Friday moved to ease concerns in financial markets, saying that while US economic momentum is solid, the central bank is sensitive to the risks highlighted by investors and will be patient with its monetary policy in 2019.

Those back-to-back market-friendly developments helped United States and European stock bourses surge higher and set aside for now nervousness over trade wars, a U.S. government shutdown and a slowing economy that have pressured stocks for most of the last month.

But Powell struck a more cautious stance on Friday about future moves.

At a panel discussion in Atlanta with former Fed chairs Janet Yellen and Ben Bernanke, Powell said economic data suggest "ongoing momentum heading into 2019", adding that Fed officials will be "patient" as they "watch to see how the economy evolves".

Nonfarm payrolls rose by 312,000 in December, surpassing analyst forecasts. And paychecks grew a better-than-expected 3.2% from a year ago as employers raised wages to attract new workers.

Yet the unemployment rate went up to 3.9 per cent, which was highest level since July, 2018.

Stocks sank Thursday after Apple said iPhone sales in China are falling, partly because of the trade fight, and a survey suggested us factories grew at a weaker pace. The People's Bank of China announced it would slash the amount of money that banks are required to hold in reserve, the latest in a series of policy changes the government has taken to support growth.

"We really need to be looking at the data and having the economy tell us, do we need to move more?"

The up and down market continues.

Global stocks are jumping Friday as investors welcomed news of trade talks between the US and China next week and the USA government reported a big increase in hiring in December. He acknowledged that recent economic reports out of China were mixed, but noted that the Chinese authorities are responding with additional stimulus.

The S&P 500 posted no new 52-week highs and 1 new low; the Nasdaq Composite recorded 5 new highs and 14 new lows.

Japan's Nikkei index dropped 2.3% Friday, that market's first day of trading following the New Year break.

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