What a tease.
The S&P 500, which had briefly climbed above its record close of 2,130.82 earlier in the day, on the back of the US jobs report, failed to hold on to those gains and stopped short of setting a new all time-closing high.
News that the US economy had created 287,000 jobs last month — at its quickest pace since October — helped the S&P 500 rise 1.5 per cent on Friday and took the benchmark index’ weekly gains to 1.3 per cent. Meanwhile, the Dow rallied 1.4 per cent on Friday and was up 1.1 per cent for the week.
While the rebound in nonfarm payrolls helped reassure investors about the health of the US labour market, the lack of a meaningful pick up in wage inflation suggested that the Fed might continue its current “wait and see” policy stance.
The strength in job creation alongside better-than-expected services and manufacturing reports published this month have helped ease concerns on the health of the US economy and helped the major equity indices erase their post-Brexit losses.