The U.S. labor market is in a surge, surpassing all forecasts in May and posting its strongest performance in recent months. In May, Nonfarm payrolls surged by 339,000 - a major jump from the anticipated 190,000, it appears the labor market is alive and kicking.
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May's unemployment rate jump was a surprise, mainly because of a hike in unemployment from 3.4% to 3.7%, ahead of predictions of a slight increase to 3.5%.
On a more upbeat note, average hourly wages grew by 0.3% month-on-month, meeting expectations despite a slowdown from April's gain of 0.4%. The annual wage growth fell short at 4.3%, unable to meet expectations or match April's 4.4% figure.
In March and April, significant changes were made to the total nonfarm payroll employment, resulting in 52,000 and 41,000 jobs.
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The final countdown: The jobs report is the final major economic indicator ahead of the Fed s policy decision and May inflation rate release, scheduled for June 14. The Fed could move towards a more restricted monetary policy, with robust employment and steady wage growth.
As investors grappled with the unexpected job numbers, they adjusted their expectations for a June Fed rate hike, nudging the probability from 20% to 27%.
On Friday, the S&P 500 index rose 0.72%, and the yield of the 10-year note rose by 3 basis points to 3.63%.
Here's a snapshot of 10 stocks dancing to the tune of May's booming jobs report during Friday's premarket session.
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