Hello traders everywhere. The DOW surged over 300 points Friday on renewed hopes of a July rate cut by the Fed and possibly as much as three cuts by the end of the year. All three of the major indexes will post weekly gains over +4%, which is incredible considering that nothing has changed from last week. We still do not have an agreement in place with both China and Mexico when it comes to trade deals and the threat of increased tariffs is still real.
The Dow is up +4.8% this week. It is also on pace to snap a six-week losing streak. The S&P 500 and Nasdaq were up +4.6% and +4.9% this week capping off an incredible comeback after a soft open to the week and continuous weekly losses. They are all on pace to notch their biggest weekly gains since November of 2018.
Earlier in the week, ADP reported that the private sector added fewest jobs in May since 2010 with jobs only rising by 27,000 last month which was way below expectations of a 180,000 increase. To add to that Labor Department reported on Friday that nonfarm payrolls increased by 75,000 jobs last month, much smaller than the 185,000 additions estimated by economists, suggesting the loss of momentum in economic activity was spreading to the labor market.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 2,884.97
- Dow (INDEX:DJI): 24,680.57
- NASDAQ (NASDAQ:COMP): 7,804.44
- U.S. Dollar (ICE:DX): 98.17
- Gold (NYMEX:GC.M19): 1,327.40
- Crude Oil (NYMEX:CL.N19): 51.27
- Bitcoin (BITCOIN:BITSTAMPUSD): 7,432.84