After seven straight record closes, the Dow’s reaction to Friday’s solid US jobs data has been balanced rather than breathless – with much of the cheerleading left to President Trump. Marcus Bullus, trading director of MB Capital, comments.
Nevertheless there’s much to be reassured by in this comprehensively strong jobs print. Yes the headline figures are impressive, both on the job creation and unemployment rate fronts. But the details are arguably more important – the participation rate is creeping up as more Americans return to work, and average wages continue their solid upward progress.
With more Americans working, and more Americans earning more, the US’s consumer-led growth remains firmly on track – powering equities into a sustained bull run. Marketwatchers have so far been able to ignore the President’s increasingly stalled policy agenda and the tightening net of Robert Mueller’s Russia probe, but markets can only look past political developments for so long.
With the July jobs report showing the US economy continues to power ahead, the factors most likely to derail the markets’ continuing run of confidence are now set to come from Washington rather than Wall Street.