This week was all about the Federal Reserve and the U.S. economy, whichprovided markets with a much-needed break from outright fretting about the ongoing trade war - even though nothing has been resolved on trade, and those risks still persist.
The May jobs report comes on the heels of April's job report that showed the lowest unemployment numbers in 50 years. The Dow Jones Industrial Average was up 0.7%, or 183 points, while the S&P 500 similarly grew 0.7%, or 21 points, and the Nasdaq Composite advanced almost 1%, or 73 points. Job growth in March and April was revised down by 75,000.
The unemployment rate stayed steady at 3.6%, and the share of people in the labor force remained unchanged, at 62.8% of adults. The sector has grown by only 30,000 jobs this year, after adding 264,000 last year. Economists have warned that the trade fights could undermine the economy, which will celebrate 10 years of expansion next month, the longest on record.
Consumers have been cautious about spending, and companies are scaling back their investment in high-cost machinery and equipment. But private employers added just 82,000 service jobs in May, less than half the number of the month before.
Last week, Trump said he would impose a tariff on all goods from Mexico in a bid to stem the tide of migrants across the U.S. "Coming in the context of tariffs and other economic headwinds makes this number more worrisome".
'X-Men: Dark Phoenix' Had Similar Ending To This MCU Movie
Instead, she evolves into something new and we see the bird outline of her phoenix form in the sky at the end of the film. After leaking Salman Khan's Bharat , now the notorious website has leaked X-Men: Dark Phoenix hours after its release.
The weaker-than-expected jobs report will be another factor for central bankers to consider as they work to preserve economic growth in the face of rising trade tensions. A lack of wage pressure indicates that employers aren't as desperate for workers as they often say they are.
Wages rose 3.1% from a year earlier, down slightly from last month's gain of 3.2%. That was the smallest such annual increase since September.
Manufacturing employment rose by only 3,000 new jobs in May, signaling softness in the sector tied to trade tensions and slowing global economic growth. A category that includes telecom, publishing, and media shed 5,000 jobs. "One of the economy's only bright spots is finally weakening".
"It's insane to have a percentage that high", said David Madden, market analyst at CMC Markets. The company hires software developers in its Sacramento office, and is able to attract employees who are exhausted of the high cost of living in San Francisco.
Hiring slowed sharply in May, as companies in industries hardest hit by President Donald Trump's escalating trade war hesitated to bring on new employees.
Trump also raised tariffs from 10 to 25 percent last month on $200 billion of Chinese imports, after accusing the world's second-largest economy of reneging on terms of a previously agreed-upon trade deal. A strong dollar, which makes U.S. goods costlier overseas, has also slowed the production and export of manufactured goods. Factory output fell 0.5% in April, according to a Fed report.
Automakers are cutting jobs and production as USA sales have slowed.