Investors shrug off tariffs; US stocks gain as jobs report beats forecast
Service sector fuels job growth; unemployment reaches 18-year low
The three main US stock benchmarks were all up around 1.0% as of 10:30 Friday morning, after a better than expected jobs report that saw unemployment reach an 18-year low. The rebound comes as metals tariffs on imported metals from the EU, Canada and Mexico go into effect, a move that sent stocks lower on Thursday.
The US added 223,000 jobs in May, the Bureau of Labor Statistics reported, with gains overwhelmingly concentrated in services (171,000 of the total), especially in retail, warehousing and transportation. The consensus forecast was 190,000.
Average hourly pay rose by 2.7% year-on-year, slightly higher than the 2.6% consensus forecast. The market-implied inflation forecast for the Consumer Price Index over the next 10 years edged up by 2 basis points. Inflation-indexed Treasury yields were unchanged.