The first big rally of the U.S stocks comes this week after the authorities published the country’s economic survey.
The survey has revealed the record job creation for December 2022. The economic indicators also show that moving on inflation will ease.
Hence, on Friday, the U.S. Stock Market surged, and as a result of the most awaited surge, the price of the shares of all the major companies have also risen.
Talk of some of the biggest market indexes, the Dow Jones closed the weekend after seeing a rise of 700 points. According to a recent survey, the Fed’s policy of increasing interest rates hike is achieving its goals.
Some of the Biggest Markets Have Shown Strength
Starting with the Dow Jones Industrial Index, which was up by 700, accounts for a rise of 2.13% compared to the previous day. At the end of the current week, the index closes at 33,630.61.
The S&P 500 ended the day and went up to 86.98 points. This accounts for almost 2.28% gain for a single day. Overall, for the entire week, the index was at 3,895.08.
The Nasdaq Stock Exchange was up by 2.6%, at 264.05. The exchange closed its trading week at 10,569.29.
After November 30th the last year, this was the best day for both The Dow Jones and S&P 500. Talking of the Nasdaq Stock Exchange, it was the best-performing day after December 29th, 2022.
As the price of all major companies has risen, the investors and stock market community were happy and positive about the market’s future.
Friday’s price rally was significant, and as a result of this price surge, most companies’ shares were in the positive zone.
As a result of this strong price rebound, almost all the major companies will start the new trading day with a big positive.
The December Economic Survey Shared Some Interesting Figures
For December 2022, the U.S. federal government created more than 223,000 jobs last month. This number is higher than the estimated 200,000 jobs.
Talking of the wage rate, the rate grew slower than market expectations. It was expected that the wage rate would increase by 0.4%. However, the actual growth was 0.3%.
Although the wage rate growth was slow, it was a positive sign that the purchasing power of consumers would be higher in 2023.
What impressed investors the most is inflation is heading in the same direction that the Feds set up. Moreover, the future will also see inflation slowing down.
The rise in average hourly earnings is what investors care about above all else. This will give them more purchasing power, and as a result, inflation will grow lower and lower.
In December, some of the biggest industries, such as IT and Energy, were squeezed a bit. In the second trading week of 2023, stock prices are rising again, and stock markets are expanding again.
As things stand now, the market is strongly bullish, and now only major economic concern left unaddressed is the possible economic recession.
Economic experts such as Michael Arone, the lead financial strategist at “State Street Global,” recently told CNBC, “Recession talks are nothing more than just a rumor. The rumor is coming from those who support the market bears.”
He further said that some of the stock whales want to bring the market down so they can buy these valuable stocks at low prices and then resale them once the price goes up—that way, they can earn big in a shorter period.
As of this writing, stocks have increased, except for the healthcare sector. All other sectors moved upward.
However, the healthcare sector was down by 0.1%. Talk of the biggest performers, Biogen, a biotech company, has seen a rise in its share price by 5.2. The new price of Biogen’s stock is $279.25.
The approval of the company’s new drug gave the needed momentum to the company’s share price.