So-So Jobs Report Is Good News for Markets

Major indexes rise because Fed isn't expected to pull back on efforts
By Newser Editors and Wire Services
Posted Jun 4, 2021 3:04 PM CDT
So-So Jobs Report Is Good News for Markets
A sign for Wall Street in New York.   (AP Photo/Mark Lennihan, File)

Stocks closed higher on Wall Street Friday after a lukewarm report on the job market raised hopes the Federal Reserve will keep the accelerator floored on its support for the economy. The Dow rose 179 points to 34,756, the S&P 500 rose 37 points to 4,229, and the Nasdaq rose 199 points to 13,814. The latest jobs report is another sign that the economy continues recovering, but employment is relatively shaky and struggling to get back to pre-pandemic levels. It may have also opened the door for the Fed to keep up its efforts, which include monthly bond purchases to keep interest rates low.

“There are still seasonal issues,” Liz Ann Sonders, chief investment strategist at Charles Schwab, tells the AP. There is, she said, a “disconnect between job openings, which have been incredibly robust, and the desire or willingness to go back to work.” Investors have been worried about rising inflation becoming a long-term issue, rather than the temporary effect from the recovering economy. They are also worried that the Fed could consider pulling its support for the economy if inflation runs too hot.

(More stock market stories.)

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