Dow Jones, S&P 500, and Nasdaq continue to trade in a bull market as tepid U.S. monthly jobs report cooled tightening expectations

Wall Street’s three main indexes ended sharply higher on Friday as tepid U.S. monthly jobs report cooled tightening expectations and put the U.S. dollar under selling pressure. The U.S. released the Nonfarm Payrolls report on Friday, which showed that the country added 559K jobs in May.

The job report missed economists’ estimate of 650K in May and damped concerns that the Federale Reserve will have to tighten its ultra-loose monetary policy sooner than anticipated. The positive news is that the unemployment rate fell to 5.8% from 6.1%, signaling a steady economic comeback.

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Before this report, investors were nervous that a robust jobs report could be a trigger for raising interest rates. The report boosted demand for high-yielding assets and confirmed the U.S. Federal Reserve’s stance of maintaining an ultra-loose monetary policy for the upcoming period.

“It keeps pressure off the Fed and will enable them to keep their low-interest-rate policy in place longer and take more of a wait-and-see attitude. The opportunity to keep rates low is good news for risk-takers,” said Jack Ablin, chief investment officer at Cresset Capital Management.

The prospect of a $6 trillion budget from Joe Biden that includes a huge provision for infrastructure projects also positively influences the stock market. Dow Jones, the S&P 500, and Nasdaq rose for the week and continue to trade in a bull market.

S&P 500 up 0.6% on a weekly basis

For the week, S&P 500 (SPX) booked a 0.6% increase and closed at 4,229 points.

S&P 500 continues to trade in a bull market, but if the price falls below 4,000 points, it would be a strong “sell” signal, and we have the open way to 3,800 points.

DJIA up  0.7% on a weekly basis

The Dow Jones Industrial Average (DJIA) advanced 0.7% for the week and closed at 34,756 points.

The Dow Jones Industrial Average continues to trade near record highs, and if the price jumps above 35,000 points, it would be a bullish confirmation for this index. On the other side, if the price falls below 34,000 points, it would be a firm “sell” signal, and the next target could be around 33,500 points.

Nasdaq Composite up 0.5% on a weekly basis

 The Nasdaq Composite (COMP) gained 0.5% on a weekly basis and closed at 13,814 points.

The Nasdaq Composite closed less than two hundred points below the important resistance level, and if the price jumps above 14,000 points, it would be a bullish confirmation for this index. The current support level stands around 13,500 points, and if the price falls below this level, it would be a strong “sell” signal, and we have the open way to 13,000 points.

Summary

The U.S. released the Nonfarm Payrolls report on Friday, which showed that the country added 559K jobs in May. The weaker-than-expected job report helped stocks to advance because it alleviated concerns about rising inflation and potentially higher interest rates.