DAILY MARKET REPORT

DJIA 25983.94 +263.28

Nasdaq 7742.10 +126.55

S&P 2873.34 +29.85

Stocks jumped on Friday, building on strong weekly gains, as weak economic data increased the odds of easier monetary policy from the Federal Reserve.

The U.S. economy added 75,000 jobs in May, marking the second time in four months that jobs growth totaled less than 100,000. Economists polled by Dow Jones expected an increase of 180,000 jobs. Wage growth also slowed.

Market expectations for a Fed rate cut in June rose to 27.5% from 16.7% after the data release, according to the CME Group’s FedWatch tool. The market is also pricing in a 79% chance of lower Fed rates by July.

FOREX

The U.S. dollar fell on Friday after the American economy added fewer jobs than expected last month.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.4% to a seven-week low of 96.607 by 9:57 AM ET (13:57 GMT).

The U.S. economy created 75,000 jobs in May, much fewer than expected, while wage inflation eased, the Labor Department reported.

The data increases expectations that the Fed will cut rates as the job market peaks. Expectations were already higher that the central bank will cut rates due to trade tensions between the U.S. and China and lowered growth forecasts around the globe.

Fed Chairman Jerome Powell indicated this week that the central bank would “act as appropriate to sustain the economic expansion.”

The possibility of a rate cut in June rose to 33.3% from 20% earlier, while the expectation for rates to be lower in December is at 98%, according to Investing.com’s Fed Rate Monitor Tool.

The dollar was lower against the safe-haven Japaese yen, with USD/JPY falling 0.3% to 108.04.

Meanwhile, the euro jumped to a seven-week high with EUR/USD rising 0.4% to 1.1318.

Sterling was also higher, with GBP/USD gaining 0.4% to 1.2745, while USD/CADslipped 0.6% to 1.3281.

COMMODITIES

Gold retreated from a 14-month peak on Monday after an agreement late last week between the United States and Mexico to avert a tariff war crimped safe-haven demand for the metal.

The United States and Mexico struck a deal on Friday to avert a tariff war, with Mexico agreeing to rapidly expand a controversial asylum program and deploy security forces to stem the flow of illegal Central American migrants.

Oil prices rose on Monday after Saudi Arabia said producer club OPEC and Russia were likely to keep withholding supplies, and in relief that the United States and Mexico averted a trade war that would have damaged the global economy.

Source-CNBC/Investing.com


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