SP500 Surges to Two-Week Highs after US Jobs Data
08 July 2022
The SP500 index erased all daily losses and rocketed higher today, jumping above 3,900 USD after unexpectedly strong US labor market data.
Labor market remains strong
Earlier today, data showed that US payrolls increased by 372,000 in June, above predictions of a 268,000 gain.
The changes in total nonfarm payroll employment for April and May were each revised downward by 68,000 and 6,000, respectively, from +436,000 to +368,000 and +390,000 to +384,000. After these changes, employment for the months of April and May as a whole was 74,000 fewer than originally estimated.
Not only was the June payrolls number better than anticipated for the third day in a row, but it was also the most significant improvement since February.
Moreover, at 3.6%, the unemployment rate was as predicted (and unchanged from last month), The labor force reportedly shrunk once again, from 164.376 million to 164.023 million, and the participation rate fell below expectations, to 62.2% from 62.3%, and more than predicted to 62.4%.
Canceling bearish trend
The SP500 index is about to jump above the medium-term bearish trend line, canceling the bearish trend and likely sending the index further higher toward the 4,000 USD threshold.
On the downside, the support is near 3,800 USD, and as long as the index trades above it, the short-term outlook appears bullish.