Stocks ticked higher after data showed the U.S Labor market added more jobs than expected. The jobs report for April increased by 263,000 and unemployment rate ticked down to 3.6%. Additionally, strong corporate earnings and improving global economic data have eased concerns about an economic slowdown.
Bond prices are down slightly, and 10-year treasury is yielding 2.57%. Expectations for the U.S. economy continue to adjust after the Fed announced their patient stance. Chairman Powell also described the lower inflation as transitory, which damped investors’ hopes of a future rate cut.
U.S. jobs top forecasts with 263,000 gain in April. The U.S. economy has continued to accelerate as unemployment unexpectedly fell to a 49 year low in addition to surprisingly strong hiring and cooler than expected wage gains. This all suggests the hot labor market can extend its run.