Increasing unemployment is not suggesting that the economy is in its perfect shape, however, under current circumstances, markets are reacting positively to such news. This comes from their optimistic view that the rise in unemployment would push Fed officials to decrease interest rates and in this sense, create better conditions for the future growth of the economy. The S&P 500 started the previous week at the level of 5.238, however, during the week was in a bullish mood and hit new ATH on Friday's trading session, after posted jobs data in the US. New highest level reached was 5.371. The index is closing the week at the level of 5.346. This was another winning week of the index, with a weekly gain of 1.32%, supported by macro data and also robust corporate earnings, and tech companies.
The week ahead brings FOMC meetings and rate decisions. Also Fed`s economic projections will be discussed. This might bring back some volatility on the markets, especially if Fed Chair Powell communicates any new information that the market did not price in the previous period. However, for the moment, investors' optimism still holds strongly over the course of the US economy in the coming period.
The week ahead brings FOMC meetings and rate decisions. Also Fed`s economic projections will be discussed. This might bring back some volatility on the markets, especially if Fed Chair Powell communicates any new information that the market did not price in the previous period. However, for the moment, investors' optimism still holds strongly over the course of the US economy in the coming period.
