Stock Market Drops to Close Out Week. Why Are Stocks in Decline?
The stock market fell on Friday as it opened, continuing to decline from Thursday’s retreat. We could see the market indices looking low as trading closes for the week.
The Dow Jones dropped the most, losing 0.55% before trading opened on Friday. The S&P 500 fell 0.19%, and the Nasdaq dropped $0.18%. However, at the time of writing, the market was starting to improve. We saw a complete turnaround from all three indices.
The S&P was gaining 0.18%, and the Dow Jones was climbing by 0.21%. The big leader here was definitely the Nasdaq Composite, which was up by .30% at the time of publication.
We saw a decline on Thursday, further worsened by early morning trading on Friday. These numbers were likely a result of less than exceptional reports across the economic spectrum, which included Consumer Credit, Nonfarm Employment Change, the Unemployment Rate, and more.
The most crucial of these is certainly the Unemployment Rate, which was up to 4.2%. That increase was expected, and the rate was up from the previous month’s 4.1% unemployment rate. However, the market took a tumble this week as a result.
What Is Causing the Stock Market to Improve?
The US jobs report for November just released on Friday morning. The market was trepidatious in anticipation for the report, but as the numbers came out, the market jumped.
That is because the report was so positive, indicating that 227,000 jobs were added for November. Even though the unemployment rate ticked up recently, the jobs market is extremely healthy. October’s numbers were dire, indicating that only 36,000 jobs were added in that month. Now, with November’s job numbers in the rearview mirror, it looks like October was simply an aberration.
With those kinds of impressive and promising numbers, we should expect the stock market to climb much higher. Monday could see the market jump even further as those job report numbers are analyzed and weighed against consumer spending, unemployment, and inflation over the weekend.
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