Friday morning came with the welcome news of increased stock futures, thanks to an official announcement of strong job growth during the month of May.
More than 220,000 jobs were created during May, leading to an 18-year unemployment low of 3.8%. This news will be relieving for economists, investors, and the general public, especially considering that there has been recent concern that the economy would start to slow as inflation rises.
The news didn’t come without controversy, as President Trump made a tweet early on Friday morning that hinted to the positive job growth before the announcement went through proper channels.
Trumps Tweet, simply telling his followers “[I am] Looking forward to seeing the employment numbers at 8:30 this morning”, was frowned upon by some observers who noted that legally there can be no prerelease or disclosure, a rule which some saw as being broken by the tweet. However, there’s unlikely to be further action taken on this, as President Trump’s tweet was ambiguous at best.
Job Growth, Outside of the Politics
Politics are expected with such a massive announcement but pushing them aside it is possible to take strong positives for both investors and the average working American.
Job growth and a decrease in unemployment reinforces the fact that the economy is in a better shape than it has been in many years. Not only is it strong today; but continued positive results like this are an indication that growth is not slowing. If this growth can be maintained with sensible levels of inflation and interest rate increases, then everyone is going to benefit in the long term.
Investors were highly positive after the official announcement, leading to the following futures on Friday morning:
Stocks had dipped slightly on Thursday after it was announced that the government would apply a 25% tariff to steel and aluminum imports from the European Union. These futures and increased confidence should offset those losses in the near future.
Investors on Friday morning took advantage of the previous day’s stock declines, indicating that recent ups and downs are based more on opportunism rather than any widespread lack of confidence in the market.
A strong economy often comes with a strong stock market. Despite the volatility at the start of the year, we are now moving into what many investors hope will be a period of optimism and gradual but sustained growth.
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