- The Dow Jones moved further above 27,000 on Friday as the S&P 500 and Nasdaq hit record highs in response to new US employment data.
- Bulls backed the stock market because the trade war doesn’t appear to be doing as much damage to the domestic economy as some feared.
- A report from ING presents a worrying alternate reality for the Dow, as the employment figures may not be all they appear.
The Dow Jones approached a new record high on Friday, as a mixture of positive data on both sides of the US-China trade war lifted the stock market’s spirits. Diving deeper into the figures, however, some obvious risks continue to emerge for the Dow.
Dow Jones Roars While Trump Hails Nasdaq and S&P 500
Heading toward the closing bell, the Dow Jones Industrial Average had soared 255.28 points or 0.94% higher to 27,301.51. It’s now less than 100 points below its all-time high.
The Dow Jones rose close to a record high on Thursday, despite more evidence of an economic slowdown in the US. | Source: Yahoo Finance
President Donald Trump preemptively cheered record highs in both the Nasdaq (+0.91%) and the S&P 500 (+0.82%), and the indices maintained those gains as the session wound to a close. The Dow Jones was the best performing of the three, but it didn’t quite hit the heights needed to get a shoutout from Trump.
The president also made a very odd move by providing some questionable jobs numbers before the actual release, which may have pumped the rally in the Dow slightly if bulls gave them any credence.
Elsewhere, Chinese Caixin manufacturing appeared to be a significant catalyst for risk appetite alongside the better than expected US payrolls figure.