Dow Jones trims losses following upbeat US employment data.
A moderate slowdown in the yearly wage growth has eased investors’ concerns about the strong employment reading.
The sharp reversal in the weekly chart suggests that a deeper correction might be in progress.
The Dow Jones Industrial Average (DJIA) traded higher in Friday’s morning session, following upbeat US employment figures. The index, however, is on track for its worst week in the last year as the strong US economic data has put the Federal Reserve’s (Fed) easing plans into question.
Net employment increased in March by 303K, following a 270,000 increment in February and beating expectations of about a 200K rise. Wage figures revealed that salaries keep rising although the moderation in the annual rate seems to have eased investors’ concerns.
On Thursday, Minneapolis Fed President Neel Kashkari suggested that with inflation steady at high levels the bank might refrain from cutting rates this year, which sent equity markets tumbling.
The main Wall Street indices are all positive on Friday. The NASDAQ is leading with a 1.38% advance to 16,271, followed by the S&P 500, up 1.17% at 5,207, and the Dow Jones, which adds 0.9% to 38,943
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