US stocks end mixed weekly gain but rate after strong jobs report
U.S. stocks ended Friday on a mixed note after a choppy day of trading after a strong jobs report in June, although all three major indexes posted a gain for the week.
The United States added 372,000 jobs last month, beating forecasts as the economy edged closer to employment figures before the pandemic. But the high number suggests the Fed will remain committed to its path of raising interest rates to keep inflation under control.
“It’s hard to rectify the way some claim the economy is in recession while job growth remains well above long-term averages and wage growth is the strongest in decades,” he said. said Peter Essele, head of portfolio management at Commonwealth Financial Network. “More jobs and higher wages mean more purchasing power for consumers, which bodes well for an economy that is two-thirds consuming.”
Here’s where the U.S. indices stood after the market closed at 4:00 p.m. Friday:
Upstart shares plunged as much as 22% after the online lender cut its quarterly forecast on inflation and recession fears. The company now reports second-quarter revenue of $228 million, down from previous estimates of $295 million to $305 million.
In a note released Friday by Bank of America, analysts said the United States would need a deep recession to bring inflation back to a target of 2% within two years. To tame high and sticky prices, the Fed would have to be very aggressive with rate hikes.