This week saw a significant recovery in the stock markets, due to investors’ belief that the war between the U.S. and Iran might be nearing its end. The S&P 500 posted its best day since May, ending higher by 3.4% for the week. The Dow Jones and Nasdaq Composite also recorded gains, dipping in and out of correction territory, and they increased by 1.2% and 2.2% respectively.
Markets appeared mighty due to the surprisingly strong jobs report and rising optimism over an end to the U.S.-Iran conflict, adding a robust 178,000 nonfarm payrolls in March, contrasting sharply with February’s loss of 92,000 jobs.
The overall performance of the European shares was also strong, with the regional Stoxx 600 ending the day 2.5% higher. The performance of FTSE 100, Germany’s DAX and France’s CAC 40 also improved, gaining 1.9%, 2.7%, and 2.1% respectively.
Shares of Levi Strauss underperformed even though the company continues to deliver robust earnings, declining more than 8% year-to-date. On the other hand, Delta Air Lines has distinguished itself as one of the most consistent earners among airlines.
In terms of future anticipation, consumer spending and inflation readings are expected this week. Payrolls and the prices consumers pay for a broad range of goods and services will be assessed as these metrics play an essential role in deciding Federal Reserve’s interest rates.
Sources:
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