Categories: BusinessFinance

Dow Jones sets record high for the week jumping over 800 points

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The Dow Jones soared to close the trading week along with the S&P 500 as well as Nasdaq. The positive market sentiment came as the U.S. employment surprisingly recovered to record levels.

It has been another glorious week at Wall Street as the Dow Jones shined amid results coming from job reports. The Dow Jones Industrial Average rose to 829.16 points or 3.1% to close the trading week. The S&P 500 followed suit with a close at 3,193.93, which gained 2.6%.

The end of week gains placed the S&P 500 up more than 45% from a March 23 intraday low and less than six percent from its February 19 record.

This could be the sign of hope that investors and traders are waiting for in anticipation of an economic recovery.

In addition to Dow Jones gains, the Nasdaq 100 has also been making noise with Genius Brands having a massive surge of over 2,000% on its stock price as their network launch draws near.

Also, this week according to a Reuters report, Warner Music was able to debut an eight percent gain in Nasdaq on its IPO day after a brief delay.

Airlines, malls, and bank stocks received the spotlight

As the Dow Jones expressed a strong rally to end the week, the U.S. stocks performed exceptionally well.

However one of the experts expressed caution regarding the matter as JJ Kinahan, chief market strategist at TD Ameritrade told CNBC:

“We’re having an unbelievable day […] The one thing I’m still cautious on is this incredible optimism trade is being driven without any earnings yet to support it.”

Airline shares soared as the industry added more summer flights as American Airlines gained 11.18% on June 5, along with United Airlines jumped 8.45%.

Mall operator Simon Property gained 15.47%. Kohl’s and Nordstrom advanced 11.49% and 6.05%, respectively.

As for the financial sector that was decimated during the pandemic, gains were also present after the released jobs report showed a quick bounce back for the economy.

Citigroup, Wells Fargo, JPMorgan Chase, and Bank of America rose at almost 5%.

May jobs report unexpectedly rose amid the pandemic

As per CNBC, U.S. employment skyrocketed by 2.5 million in May, and the jobless rate declined to 13.3%, according to recent data from the Labor Department exceeding analysts’ expectations.

Economists polled by Dow Jones expected payrolls to plummet by 8.33 million, and the unemployment rate skyrocket to almost 20% from April’s 14.7%.

In an unexpected turn of events, May’s numbers may be a good sign for the U.S. on its road to recovery after its fastest plunge in history.

President Donald Trump also took his praises to Twitter praising Jim Cramer and the rest of CNBC for reporting that the market was right.

Investors shall see next week if the positive rally brought about by the Dow Jones will sustain moving forward.

Featured image courtesy of David Vives/Pixabay

Alec Padua

Alec a former mobile app developer turned independent singer-songwriter and busker based in the Philippines, who goes by the stage name "Alex Corner". He has released songs on Spotify and other music digital platforms. A self-taught trader and financial market enthusiast, he also started his own YouTube channel and blog called "The Trading Comedy" where he documents his trading journey in the Philippine Stock Market and beyond. He is also a casual gamer and streamer who enjoys FPS, RPG, and strategy games as well as conducting live charting sessions in the financial markets.

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