Whilst wage gains remained historically moderate, the 2.9% increased experienced in December 2016, as revealed in the U.S. jobs report issued Friday, aided in pushing U.S. stocks higher, and the Dow within single-digit points of the 20,000 mark.
Many U.S. stocks surged on the U.S. wage growth revealed in the jobs report this Friday regarding December 2016. Despite an increase in joblessness, up from 4.6% in November to 4.7% in the final month of 2016, U.S. stocks rose on the news of high wage growth, despite the 2.9% increase being lower than that experienced in previous years.
The index came close to reaching the 20,000 mark in trading sessions in late November and early December – reaching within 15 points of the historic barrier. However, investors cashing in profits and a strong dollar prevented the index from climbing any further – dipping into the 19800 region and lower in the final trading sessions of 2016.
U.S. shares had, in the new year, performed well on the release of minutes from the Feds December meeting, released on Wednesday. Many stocks had however reversed gains made in the wake of the release in Thursday’s trading session.
Release of the U.S. jobs report provided sufficient incentive for the index to reach close to the 20,000 mark – coming within single-digit points of the mark prior to slipping to 19987.80 at 13:20 EST.
Many traders and analysts are predicting Friday’s trading session to close with the Dow above, or having reached the 20,000 mark, although even at such a close mark – scepticism remains.
Chart from: https://www.ig.com
Showing the Dow Jones index come close to 20,000 mark.