US stocks performed excellently this afternoon while the Greenback fell following a pickup in hiring last month. The job data has bolstered confidence in the economy. However, the surge in hourly wages contributed to inflation worries in the country, leading the US Dollar to perform poorly.
US stocks rally, USD underperforms
US equities are performing excellently as the stock markets in the country open. This comes following an impressive job data presented a few hours ago. The United States added 559,000 jobs in May, one of the highest recorded in a while and just below the average forecast.
Following this impressive job data, US indices are performing excellently this afternoon. The S&P 500 is currently up by 0.5%, while the NASDAQ 100 also surged by 0.8%. Furthermore, the Dow Jones Industrial Average went up by 0.4%, the Stoxx Europe 600’s value is up by 0.2%, and the MSCI World index has seen a 0.5% increase.
S&P 500 chart. Source: FXEMPIRE
While the stocks are performing well, the US Dollar is having a tough time in the market. The Bloomberg Dollar Spot Index dropped by 0.5%, while the Euro gained 0.4% over the past few hours to now stay at $1.2176. The GBP also went up by 0.7% against the USD and now stands at $1.4198. The Greenback is basically losing against most of its major competitors as it is also down by 0.6% against the Japanese Yen.
The decline in the US Dollar’s performance is due to the increase in hourly wages, creating concern about the rising inflation wages in the country.
Will the job data continue to increase?
The economy of the United States and several other countries in the world is slowly recovering following the Coronavirus pandemic that plagued virtually every country last year. Due to the pandemic, millions lost their jobs.
However, the Biden administration is targeting at least 70% of Adult Americans should be vaccinated over the coming months. This would allow more businesses to open and more people to go back to work. In that case, the job data could continue to increase or maintain this level over the coming months, strengthening the equities market in the process.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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