U.S. Markets Rally Despite Downturn In NFP - Forex News by FX Leaders

U.S. Markets Rally Despite Downturn In NFP

Posted Friday, December 4, 2020 by
Shain Vernier • 1 min read

For the better part of a month, U.S. stocks have been on a significant bull run. The big three equities indices are up big, suggesting that positive sentiment is running near all-time highs. Today has been no different. After a sluggish U.S. Non-Farm Payrolls (NFP) report, the DJIA DOW (+175), S&P 500 SPX (+25), and NASDAQ (+75) are all in the green. At this point, it appears as though nothing can derail the late-2020 American stock market rally.

Today’s headliners were the jobs numbers from November. Here’s a quick look at the highlights:

Event                                                                    Actual                   Projected          Previous

Non-Farm Payrolls (NFP) (Nov.)                         245K                       469K                     610K

Unemployment Rate (Nov.)                                 6.7%                        6.8%                    6.9%

Labor Force Participation Rate (Nov.)                61.5%                      NA                      61.7%

No doubt about it, the second wave of COVID-19 has hampered hiring in the United States. NFP came in at 245,000, nearly half of the projected number of 469,000. However, the Unemployment Rate (Nov.) beat expectations, falling from 6.9% to 6.7%. As of now, it looks like the Fed’s September projection of 7.6% unemployment by year’s end has missed its mark.

NASDAQ Rallies As NFP Disappoints

For the December E-mini NASDAQ, it has been a strong five days. Values are currently in a position to close the week at an all-time high level despite today’s NFP. Can anything stop the NASDAQ from hitting 13,000?

December E-mini NASDAQ Futures (NQ), Weekly Chart

Overview: As we roll into the first weekend of December, the NASDAQ continues to grind higher. The key numbers on the horizon are 12,750 and 13,000. If we see a COVID-19 stimulus breakthrough over the weekend, a Monday-morning GAP up is possible.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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