US stocks along with government bonds closed
The Dow Jones Industrial Average inched 0.3% higher at 21, 206.29 after hitting previously at 21,225.04. The Nasdaq Composite, on the other hand, rallied by 1% to a new record high of 6,308.76. The S&P 500 also hit 0.4% higher during the day to another new high of 2,440.23 before closing lower at 2,439.07. Seven sectors in the index closed higher on Friday with most of the gains led by the real estate and info tech sector while the financial and energy sector were among the biggest losers during the day.
US Jobs Data
For the month of May, nonfarm payrolls amounted to 138,000 missing consensus estimates of 185,000. Despite this, the Labor Department announced on Friday that unemployment rate has declined by 4.3%.
The jobs data report also showed that wage growth has declined with average hourly earnings growing at an annualized rate of 2.5% while average work week remains unchanged at 34.4 hours.
This has been the third-month jobs growth have declined. The Labor Department posted a decline of 50,000 from 79,000 back in March and from 211,000 in April to a decline of around 174,000.
In spite of a weak report, the markets are still largely expecting another interest rate hike this month from the Federal Reserve during its meeting this coming June 13-14. Some analysts and economists were concerned about the state of the economy after the slow gross domestic product growth in the first quarter along with the disappointing report last Friday from the Labor Department
On Monday, the greenback rallied a little from its recent seven-month low against a basket of other major currencies after the disappointing data last Friday raised investor hopes of another interest rate hike this month from the U.S. Federal Reserve.
The U.S. Dollar Index inched 0.1% higher to 96.798 against six other major currencies as other majors including the Sterling lost ground following a third terrorist attack in Britain in the past three months on Sunday which killed around seven people.
The greenback also rallied 0,2% against the yen to 110.57 after previously hitting a two-week low of 110.25 in the previous session while the euro edged 0.2% lower to $1.1265 coming from a seven-month high at $1.1285.
Gold Records 6-Week High
Prices of gold were steady at a six-week high on Monday led by the weak U.S. Jobs that further lowered expectations for a much more aggressive interest rate hikes this year as the economic state of the country continued to weaken.
US gold futures closed 0.8% at $1,280.20 per ounce while spot gold rallied 1% higher at $1,277.76 per oQunce on Friday and is headed towards its four-week high.
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