Day Traders Diary
The major averages finished the week with a one percent move, building on strong weekly gains, the best week since November, as weak economic data increased the odds of easier monetary policy from the Federal Reserve.
The Dow Jones Industrial Average closed up 263 points at 25,983. The S&P 500 climbed 1% to 2,873 as the tech sector outperformed. The Nasdaq Composite gained 1.7% to 7,742.
Among the market sectors, information technology rose 1.9%, consumer discretionary rose 1.6%, and communication services rose 1.5%. The financials and utilities were the only two sectors to close in the red.
The major indexes posted sharp gains for the week. The Dow jumped 4.7%, its biggest weekly gain since November. It also snapped a six-week losing streak. The S&P 500 and Nasdaq were up 4.4% and 3.9% this week, respectively.
For the week, Apple soared more than 8% while Microsoft gained 6.3%. Bank shares followed yields lower.
The U.S. economy added 75,000 jobs in May, marking the second time in four months that jobs growth totaled less than 100,000. Economists polled by Dow Jones expected an increase of 180,000 jobs. Wage growth also slowed.
Market expectations for a Fed rate cut in June rose to 27% from 16% after the data release, according to the CME Group's FedWatch tool. The market is also pricing in a 79% chance of lower Fed rates by July.
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