We've just been spoiled. Financials Financial Times https: The People's Bank of China announced it would slash the amount of money that banks are required to hold in reserve, the latest in a series of policy changes the government has taken to support growth.
Riskier stocks led the rally, including tech companies that have gotten killed lately: See what's driving markets now. At the American Economic Association conference in Atlanta Friday morning, Federal Reserve Chairman Jerome Powell reiterated the strengths of the economy but also signaled the Fed would remain flexible in its management of interest rates.
The Fed has worked to gradually increase interest rates over the past couple years, unnerving investors who worried the Fed could bring about a recession by hiking rates too quickly.
The central bank indicated at last month's meeting that the economy likely warranted two rate increases in But Powell struck a more cautious stance on Friday about future moves. Although Powell called the December jobs report "very strong," he stressed that the Fed is "always prepared" to shift the stance of policy if needed. Friday's jobs report signaled the US economy still has some strength left in it. Employers added , jobs in December, well more than economists had forecast.
Friday's jobs report was the biggest surprise of the economic cycle, according to Goldman Sachs. The unemployment rate rose to 3. And paychecks grew a better-than-expected 3.
Average hourly pay was up 3. The average number of hours people worked also edged up. Stocks also got a boost after China took steps to encourage bank lending and stimulate the country's flagging economy. The People's Bank of China announced it would slash the amount of money that banks are required to hold in reserve, the latest in a series of policy changes the government has taken to support growth. China's slowing economy has been a prime factor in the extreme market volatility of the past several months.
Analysts at Macquarie Capital said that the rate cut shows government efforts to support the economy have now moved to the "second level" and should signal to investors that more stimulus is in the pipeline.
The Dow plunged points , following Apple's AAPL warning that its sales would fall well short of guidance, largely because of China's economic slowdown. They fell even further after a weak manufacturing report suggested the trade war was harming both China and the United States' economy.
Stocks have been unusually volatile in recent weeks. Japan's Nikkei index dropped 2. Yahoo Finance - Business finance , stock market, quotes, news https: News for finance Express.
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