NFP APRIL 2020 REPORT : 14.7% Unemployment Rate
(Fri, 8 May 2020). Nonfarm payrolls (NFP) for April 2020 just crossed the wires and showed the US unemployment rate at a gut-wrenching 14.7%. US Dollar and gold price action responded positively on the back of heightened safe-haven demand. Dow Jones Index and broader stock market could unwind recent gains as companies continue slashing jobs amid the coronavirus recession.
US NFP data for April 2020 highlights the paralyzing impact the coronavirus lockdown has had on the global economy, and underscores the likely unavoidable recession caused by the pandemic. The monthly net change in nonfarm payrolls just crossed the wires at -20.5 million while the unemployment rate spiked to 14.7% for the repored period.
Shifting focus to equities, US stocks started to give back gains notched in the overnight session prior to the nonfarm payrolls data release according to S&P 500 Index Futures. Since the NFP report, however, the stock market has regained upward momentum with the S&P 500 trading back above the 2,900 price level.
Additionally, US-China trade war uncertainty might return if President Trump turns hawkish ahead of the upcoming election, or if the Chinese fail to make good on their pledged purchases of US goods outlined in the phase one trade agreement.
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