June 2, 2023, 1:33 pm EDT
Strong Job Report
Non-farm payrolls in May surprised the market with a strong result. New jobs were added by 339K in May which exceeded the forecasted 190K number by a big gap. It illustrated a strong market after rounds of layoffs from many technology companies at the beginning of 2023.
Compared to the weak numbers from February to March, this number injects a kind of faith in market participants. Although it is unknown whether this rebound is sustainable for the second half of 2023, this news surprised the stock market it brings about 700 points gains in the Dow Jones index today.
The unemployment rates were also up to reach 3.7%. But, this level is still at a historically low level.
Core industrial, materials, energy, and financial sectors catch this opportunity to rally where they performed poorly in the last four months.
For example, MMM +8%, CAT +8%, CE +8%, DD +8% rushed out the gates this morning.
Since S&P 500 is breaking out today, there could be a chance for a rally. Technology is leading the way. Now, other laggards are catching up.
