Healthy Jobs Report Lifts U.S. Stock ETFs | ETF Trends

U.S. markets and stock ETFs climb on the strong monthly jobs report and positive new from President Donald Trump on trade talks with China.

On Friday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 1.1%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) gained 1.2% and SPDR S&P 500 ETF (NYSEArca: SPY) rose 1.0%.

Markets strengthened after the Labor Department revealed employers added 266,000 jobs over November and unemployment matched a half-century low of 3.5% compared to estimates of a 187,000 rise and unemployment rate of 3.6%, fueling optimism that the U.S. economy is still holding up and consumers could continue to support growth ahead, the Wall Street Journal reports.

“It’s a very solid jobs report,” Michael Arone, chief investment strategist at State Street Global Advisors, told the WSJ. “Since August you have seen recession fears recede, and this report continues to show that the U.S. economy is on a firm footing.”

Analysts now argue that the strong jobs report could push the Fed to keep interest rates on hold for the foreseeable future. The key rate-setting committee of the U.S. central bank will meet next week, but Fed watchers anticipate rates to remain steady in light of the positive economic data and its three cuts so far this year.

“After the sharp slowdown at the start of the year, the recent rebound in employment growth is clearly encouraging and suggests that the loosening in financial conditions this year is starting to support the economy,” Andrew Hunter, senior U.S. economist at Capital Economics, told Reuters.

Trump also said trade discussions with China were “moving right along”, and China revealed it will waive import tariffs for some soybeans and pork shipments from the United States in an attempt to take a step forward. However, White House economic adviser Larry Kudlow warned that the December 15 deadline is still in play for the next round of tariffs on Chinese goods, despite Trump’s enthusiasm in the direction that trade talks are going.

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