The 916,000 jobs added in March features about 280,000 new workers from the hospitality and leisure industry, while construction and manufacturing reported 110,000 and 53,000 added jobs respectively.
Stock futures showed a varying reaction or growth tickers as the United States job report for March was unveiled. The futures on the Dow Jones Industrial Average (INDEXDJX: .DJI) soared by over 161 points and that on the S&P 500 Index (INDEXSP: .INX) slightly advanced into the positive level as the Nasdaq 100 futures refused to trail the positive push.
The positive movement of the Dow Jones Futures took its strength from a growing vaccination program underway in the United States, a development that has propelled the gradual return to life as it were before the coronavirus pandemic. This includes a growing workforce as businesses reopen, and the total job growth in March which came in at about 916,000 according to the Labor Department stirring the unemployment rate to fall below 6%.
“This reflects the lifting of restrictions, ramp-up in vaccinations, and boost provided by the fiscal stimulus,” said Anu Gaggar, senior global investment analyst at Commonwealth Financial Network. “Faster jobs and wage growth can have an upward pressure on prices and test the Fed’s patience with easy monetary policy.”
The general positivity surrounding the United States economy pushed the S&P 500 to a new high above 4000 last week. The Dow Jones and the Nasdaq Composite (INDEXNASDAQ: .IXIC) also recorded impressive starts to the month, as investors got enthusiastic about the prospect of President Joe Biden’s multi-trillion infrastructure plans.
However, the broader plans by the current administration may not come without some hiccups as key Senate Republicans including Minority Leader Mitch McConnell, R-Ky noting that the infrastructure plan will not be getting the backing of his colleagues in Congress.
Overview of the US Job Report in March that Has Impact on Dow Futures
For most Americans, it is comforting to get back to work and it entails the effectiveness in the government’s efforts to boost the nation’s vaccination program, as well as its stimulus supports and general economic recovery policies.
The 916,000 jobs added in March features about 280,000 new workers from the hospitality and leisure industry, while construction and manufacturing reported 110,000 and 53,000 added jobs respectively. The return to educational normalcy also prompted new job additions in the education sector as over 190,000 new staff were hired by the local, state, and private institutions respectively.
“This reflects the lifting of restrictions, ramp-up in vaccinations, and boost provided by the fiscal stimulus,” said Anu Gaggar, senior global investment analyst at Commonwealth Financial Network. “Faster jobs and wage growth can have an upward pressure on prices and test the Fed’s patience with easy monetary policy.”
While the job growth reports remain applaudable, American workers who lost their jobs through the pandemic are not all back to work yet. Although, business activities are at a 93.5% of its pre-pandemic level as noted by Jefferies while data from Homebase, according to CNBC, shows that employees working and hours worked both soared over the past month, with significant improvements in the duo of the hospitality and entertainment industry.
These pointers are indicative of the imminent healing of the economy and an ultimate return to job levels pre-pandemic.
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