Dow Jones, S&P 500, and Nasdaq continues to trade in a bull market, although the U.S. job report disappointed

Wall Street’s three main indexes continue to trade near record highs after the U.S. released the Nonfarm Payrolls report on Friday, which showed that the country added only 235K jobs in August. The job report missed economists’ estimate of 750K in August and damped concerns that the Federale Reserve will have to tighten its ultra-loose monetary policy sooner than anticipated.

The slowdown in U.S. jobs growth raised questions about the pace of the economic recovery; still, the positive news is that the unemployment rate fell to 5.2%, while the average hourly earnings increased by 0.6% month-over-month and 4.3% year-over-year.

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Investors will continue to pay attention to the Federal Reserve commentaries looking for any clues, but surging COVID-19 cases could also hit investors’ confidence. President Biden blamed the coronavirus delta variant for the paltry number of jobs created in August, and according to the latest news, the third dose of the COVID-19 shots developed by Moderna and Pfizer will be available in mid-September for Americans who have been fully vaccinated for at least eight months.

“The months-long debate about whether Americans who have been vaccinated will need an extra dose has been seemingly blunted by the rapid spread of the delta variant and the ensuing rise of cases, hospitalizations, and deaths in the U.S. over the last month or so. Delta, which is more than twice as infectious as the original strain of the virus, represents nearly 99% of all recent cases here,” the Centers for Disease Control and Prevention reported last week.

It is also important to mention that the latest U.S. economic data was not encouraging; pending home sales unexpectedly fell, the preliminary consumer sentiment index fell to its lowest level in a decade, and the U.S. Federal Reserve Chairman Jerome Powell said that tapering may still not happen this year. 

S&P 500 up 0.58% on a weekly basis basis

For the week, S&P 500 (SPX) booked a 0.58% increase and closed at 4,535 points.

The S&P 500 index continues to trade near record highs, but if the price falls below 4,400 points, it would be a “sell” signal, and we have the open way to 4,200 points. The first resistance level stands at 4,600 points, and if the price jumps above this level, we have the open way to 4,700 points.

DJIA down -0.24% on a weekly basis

The Dow Jones Industrial Average DJIA weakened -0.24% for the week and closed at 35,369 points.

The Dow Jones Industrial Average continues to trade close to 36,000 points, and if the price jumps above this resistance, it would be a bullish confirmation for this index. On the other side, if the price falls below 35,000 points, it would be a firm “sell” signal, and the next target could be around 34,500 points.

Nasdaq Composite up 1.55% on a weekly basis

The Nasdaq Composite (COMP) advanced to record highs last week, and if the price jumps above 15,400 points, the next target could be around 15,500 points.

The current support level stands at 15,000 points, and if the price breaks it,  we have the open way to 14,500 points.

Summary

Wall Street’s three main indexes continue to trade near record highs after the U.S. released the Nonfarm Payrolls report on Friday, which showed that the country added only 235K jobs in August. The slowdown in U.S. jobs growth raised questions about the pace of the economic recovery, and investors will continue to pay attention to the Federal Reserve commentaries looking for any clues.

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