The Dow Jones rallied in its trading day last June 3 while the S&P 500 has been holding above 3,100 points. Wall Street Investors are looking to be overly optimistic about this week.
As the first week of June begins to end, Wall Street starts to become cautious as the U.S. jobless claims approach once again. The Dow Jones Industrial Average flew 527.24 points while the S&P 500 gained 1.4%.
Furthermore, Ryan Detrick of LPL Financial compiled exceptional data claiming that the S&P 500 just had its best 50-rally day in history.
This is going to go down as the greatest 50-day rally ever for the S&P 500 Index.
Take note, the previous 7 other largest 50-day rallies saw stocks higher 6- and 12-months later every single time. pic.twitter.com/y273jP9BVk
— Ryan Detrick, CMT (@RyanDetrick) June 3, 2020
However, with the protests, in which some gaming companies are supporting, as well as the coronavirus crisis still looming in the U.S., Wall Street investors are not out of the woods yet.
Other economies aside from the U.S. are also reopening this week.
June could be a crucial month for the world economies
As traders and investors continue to clamor over the reopening of the U.S. economy plus a barrage of government stimulus, one expert claims that June may be a crucial month.
Brad McMillan, chief investment officer at Commonwealth Financial Network, saw progress as businesses began to reopen all over the U.S.
In addition, he also observed that the growth rate of infections dropped in June recording 1.2% per day, in comparison to 3.3% per day in May.
He also mentions in their market blog that the second wave of coronavirus infections could be a risk for the current rally of the U.S. markets as well as the entire world.
Will the U.S. jobless claims for the week affect Wall Street?
With more businesses around the U.S. reopening and lifting of restrictions amid the protests, the projected number of jobless claims is expected to drop this week.
As per MarketWatch, economists polled that at least 1.8 million jobless workers have probably applied in the week ended May 30. This is slightly lower compared to the 2.1 million that filed last week.
In other news, ADP reports in CNBC that private payrolls have declined another 2.76 million workers in May. Ahu Yildirmaz, co-head of the ADP Research Institute, told the news outlet:
“The impact of the Covid-19 crisis continues to weigh on businesses of all sizes […] While the labor market is still reeling from the effects of the pandemic, job loss likely peaked in April, as many states have begun a phased reopening of businesses.”
As per data from Johns Hopkins University, the U.S. currently has 1.8 million cases and with the recent jobless claims polls, traders at Wall Street may have to be cautious this time around.
Featured image courtesy of Alexander Naumann/Pixabay