The U.S stock indexes showed the Dow edging higher, with the major benchmarks holding near records. The private-sector employment report for the first half of the year was actually better than expected.
The stock benchmark and its performance
- In the latest news, the Dow Jones Industrial Average traded up 57 points in order to reach 34,351 – that’s a gain of 0.2%.
- The S&P 500 index was up 2 points at 4,294. This one got its 33rd record, adding 1.19 points to 4,291.80.
- The Nasdaq Composite Index was down 30 points at 14,502.
But what is actually behind these market changes?
Stock markets have taken a pause from a rally – which has pushed equity indexes to very high numbers on technology and growth stocks. The most recent rally got stronger thanks to the fears of inflation, since the economy is still recovering from the damage made by the COVID pandemic.
In June, there were 692,000 jobs added. The Automatic Data Processing Inc. was to show that 550,000 private-sector jobs were added in the U.S. In May, there was a 978,000 gain.
The new hires grew a lot in the hospitality sector – with an increase of 332,000. In May, it was reduced to 882,000 from the initial number of 978,000.
Mike Loewengart, who is the director of investment strategy at E-Trade Financial, stated that “The private-sector payrolls may have beat the mark this month, but keep in mind it’s much lower than the downwardly revised number from May.”
Employment now is a major focus for markets, since investors are trying to see how they can improve the labour market, and how it could influence the Federal Reserve’s policy plans. The economy around the country seems to liven up a bit, with the biggest gains this month.