Technology shares led the rebound in US stocks Wednesday amid encouraging signs of a labor-market recovery.
The US private sector saw hiring accelerate through April – growing by 742,000 last month – according to ADP’s monthly employment report, as widespread vaccination led the economy to further reopen.
The median estimate from economists surveyed by Bloomberg was for a gain of 873,000 payrolls. The most optimistic estimates pegged job growth at well over 1 million.
“The labor market continues an upward trend of acceleration and growth, posting the strongest reading since September 2020,” Nela Richardson, chief economist at ADP, said in a statement.
President Biden also announced a new goal Tuesday to have 70% of adults in the US at least partially vaccinated by July. This means giving close to 100 million shots over the next 60 days, the president said.
The renewed push comes amid hesitancy among some people in the US to receive the vaccine, as suggested by a slowdown of vaccination rates across the country.
US stocks dropped sharply on Tuesday led by technology shares such as Apple, Tesla, and Amazon after Treasury Secretary Janet Yellen said interest rates may need to rise modestly to prevent the economy from overheating.
The comments of the former Federal Reserve chair come as investors worry that massive fiscal spending could lead to a spike in inflation. She clarified her comments at a second event on the same day. “It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat, even though the additional spending is relatively small relative to the size of the economy,” she said during The Atlantic’s Future Economy Summit on Tuesday.
Here’s where US indexes stood at the 9:30 a.m. ET open on Wednesday.
- S&P 500: 4,182.83, up 0.44%
- Dow Jones industrial average: 34,168.63, up 0.10% (35.60 points)
- Nasdaq composite: 13,750.40, up 0.86%
In cryptocurrencies, dogecoin continued its red-hot rally, rising more than 40% to a new all-time high near $0.70. Edward Moya, a senior market analyst at trading platform Oanda, said it seemed people were piling into the asset ahead of Elon Musk’s upcoming appearance on Saturday Night Live on May 8.
The meme token has amassed a loyal fan base, including Elon Musk and Mark Cuban.
But analysts at Mike Novogratz’s Galaxy Digital argued in a research report that the Tesla CEO is not the only thing behind dogecoin’s rapid rise. Dogecoin’s appeal lies in the fact that it is a joke “mocking a frothy market with its playful indifference,” the report said.
Ether meanwhile is up 350% year to date – hitting a new high of $3,500 on Tuesday – far outpacing the 90% rise of bitcoin. One analyst said ether will likely hit $40,000.
Oil prices climbed for the third straight day as lockdowns in the US and Europe ease, boosting fuel demand. West Texas Intermediate crude jumped 1.22%, to $66.51 per barrel. Brent crude, oil’s international benchmark, rose 1.29%, to $69.77 per barrel.News Source: Business Insider