Mario Picone, center, works with fellow specialists on the floor of the New York Stock Exchange, Friday, Jan. 4, 2019. (Richard Drew/AP) January 4 at 4:07 PM
U.S. stocks soared Friday, helped by a strong jobs report, a day after fears about China’s slowing economy sent shock waves through markets worldwide.
Federal Reserve Chair Jerome H. Powell gave investors another boost by noting that the central bank would “watch to see how the economy evolves,” suggesting it would ease the rate of interest rate hikes if the economy falters.
The first week of 2019 has been riddled with the same volatility that plagued Wall Street throughout December, fueled by a partial government shutdown and concerns that China’s status as an engine of the global economy is likely in jeopardy. After another two days of wild swings and a confounding jobs report, all major indexes bounced back, boosted by a healthy December jobs report and confirmation of upcoming trade negotiations with China.
The Dow Jones industrial average climbed more than 740 points, closing the day up 3.28 percent at 23430.59. The Standard & Poor’s 500-stock index was up 3.43 percent at close and the tech-heavy Nasdaq was up 4.26 percent.
Throughout his time in office, President Trump has frequently pointed to the markets as proof of his success. But as the markets have crumbled, he has foisted blame on the Federal Reserve and on his opponents. In tweets Friday morning, the president attributed the volatility on Wall Street to the Democrats’ takeover of the House but insisted “things will settle down.”
As I have stated many times, if the Democrats take over the House or Senate, there will