Article: Wall Street rose due to a weak employment report
Source: https://ru.investing.com/news/stock-market-news/article-2313989
Context:
Investing.com - Stock indexes in the United States went up after a weaker-than-expected report on employment in the country for October increased hopes that the Federal Reserve will refrain from further interest rate hikes.
What is meant - in simple words
The main Wall Street indices are the blue-chip Dow Jones and S&P 500 indices, which include shares of the main US manufacturing sector.
The latest US employment reports showed an unsatisfactory picture in the labor market (the unemployment rate rose from 3.8% to 3.9%), which confirms the current problems in the economy of the real sector of the states (job cuts).
The unemployment rate is one of the important arguments in the Fed's decision-making on the discount rate.
The increase in unemployment contributed to the fact that investors investing money (investing) in these exchange-traded instruments and providing demand for them increased their forecast that the Fed would stop the policy of further tightening monetary policy in order not to worsen this situation in the real sector (expensive loans for the development of these companies) and the mood of the population. This means that there is a prospect, albeit small, for maintaining and growing the economy, represented to a greater extent by the companies included in the calculation of these indices.
In this case, the growth of Wall Street indices occurred due to an increase in demand for them, purely based on expectations for future decisions of the US regulator (Fed), which will take into account labor market data without hesitation.
