Wall St Week Ahead: There’s No Need to Fear Good Stocks News
The job figures in June were stronger than expected and caused a big selloff in the bond market. The Federal Reserve further underscored expectations would be chopping back its big bond buying program sooner than later. The occurrence of this kind in the past would have caused the stock market to further go into turmoil. Last Friday, the top three major US stock indexes increased by 1%. This would possibly point the way to more gains in the future.
For quite some time, the stock market has been in an odd position. This was because of fear that the Federal Reserve would decrease its monthly bond purchase stimulus. The reduction was designed to boost borrowing demand and aid the US economy and position its investors to decent economic growth.
The report from Wall Street may have definitely changed that outlook. Last June, a total of 195, 000 jobs were created. The generation of jobs was stronger than the forecasted 165,000. The government data also showed that the US labor force has increased for three straight months now.
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