Surge in US Job Creation, Fed Reassurance Boosts Stocks
January 04, 2019
A surge in U.S. job creation and some reassuring words from the head of the U.S. central bank sent U.S. stocks soaring Friday.
The Labor Department reported a net gain of 312,000 jobs in December, far more than economists predicted. The unemployment rate, however, rose slightly, to 3.9 percent.
Many analysts said the rising unemployment rate was probably good news because rising wages prompted many jobless people to start looking for work.
People are not counted as officially
unemployed unless they have searched for work in the past four weeks. In
December, the labor force expanded by a healthy 419,000 people as wages
rose 3.2 percent over the past year.
Dec Mullarkey of Sun Life Investment Management wrote that "markets were reassured" because the Fed made it clear it was not on course to automatically raise rates and would "dynamically adjust as new data and trends emerge."
By the close of trading, the Dow advanced more than 700 points, as the major U.S. indexes rose more than three percent.