Stock market is rallying today, forecasts were wrong about the US jobs report
At 12:40 PM, ET time today June 5, 2020, the US stock market is rallying. All major stock indices are up more than 2%. The small-cap stocks outperform again, a trend that is evident for quite some time now. The latest stock market update is as follows:
S&P 500: 3,201.76,+89.41(+2.87%)
Dow 30: 27,222.01,+940.19(+3.58%)
Russell 2000: 1,518.05,+65.99(+4.54%)
The US stock market has defied bad news
Today the very positive news about jobs report and the unemployment justify the stock market rally. Yet forecasts always have the risk of being wrong. Today the actual numbers were much better than the forecasts. So in economic forecasting, the figures today for non-far payrolls and the US unemployment were totally out of sync with the actual numbers. This uncertainty makes stock market analysis both challenging and interesting. Our stock market commentary today is that the US stock market has rallied during the past two months and has defied previously bad news, such as abnormal numbers of initial jobless claims, the number of unemployed persons, a very weak GDP figure. The latest market news is positive but breaking business news such as today’s surprise related to the jobs report puts again the valuation and fundamentals into place. Some stock ideas for today are to apply due diligence to small-cap stocks, they have rallied significantly lately. We wrote today about the investing irrational exuberance. Prudence is required at these stock market levels.