Wall Street shrugs off strong US jobs data

Wall Street shrugs off strong US jobs data

The Nonfarm payrolls report revealed that 223,000 new jobs were created last month, well ahead of expectations of 200,000. Hourly earnings on average increased by 4.60 percent compared to December 2021, less than expected.

We got good news on the inflation front with wage gains that are not going well. We have had participation rates pick up again and we're still creating jobs. It's a win-win for the economy. Megan Horneman, chief investment officer at Verdence Capital Management in Hunt Valley, Maryland, told Reuters on Friday that the ISM services report was weak and broadly weak.

It's almost like people think the Fed is nearing the end of what's been one of the most aggressive tightening cycles we've seen in decades. Horneman said that's why the markets are taking off.

The tech-laden Nasdaq Composite jumped by 264.05 points or 2.56 percent to 10,569. The Standard and Poor's 500 rose by 86.98 points or 2.28 percent to 3,895. The Dow Jones industrials surged by 700.53 points or 2.13 percent to 33,630. The U.S. dollar fell despite the strong jobs data as investors bet that inflation had been tamed and the Fed would now be in a position to deliver a soft landing. The euro went up to 1.0643 by the U.S. close Friday. The British pound went up to 1.2093. The Swiss franc was close to 0.9275.

The Canadian dollar was sharply higher at 1.3441. The New Zealand dollar jumped to 0.6352.

The CAC 40 in Paris, France increased by 1.47 percent on overseas equity markets. The German Dax was up 1.20 percent. The FTSE 100 in London gained 0.87 percent.

In Japan, the Nikkei 225 added 0.59 percent. China's Shanghai Composite edged up 0.08 percent. The Hang Seng in Hong Kong retreated 0.29 percent.

Friday, the Australian All Ordinaries won 0.68 percent of the vote. Indonesia's Jakarta Composite increased by 0.46 percent. The S&P NZX 50 dropped 0.22 percent in New Zealand. South Korea's Kospi Composite increased by 1.12 percent.