“Dow Jones Surges 600 Points with NFP Data Easing Recession Concerns, Weekly Gains Exceed 3%”

On Friday, the Dow Jones Industrial Average (DJIA) soared by more than 600 points, or 1.65%, after the release of a strong US jobs report, easing fears of an impending recession in the world’s largest economy. The week is expected to end with an increase of over 3%, and at the time of writing, the Dow has surpassed the 41,300 point mark after recovering from a low of 40,658. In April, the US Nonfarm Payrolls increased by 177,000, slightly lower than the revised figure for March of 185,000, but still beating expectations of 130,000. Despite a disappointing ADP National Employment Change report earlier in the week, which suggested reduced hiring by companies, the Unemployment Rate remained steady at 4.2%, in line with projections. This may lead to the Federal Reserve (Fed) maintaining its current policies. Karen Georges, an equity fund manager at Ecofi in Paris, commented, “These positive numbers are not likely to cause inflation, but they are not enough to change the Fed’s stance, as stated by Jerome Powell.” President Donald Trump also took the opportunity to criticize Fed Chair Jerome Powell on his Truth Social network, demanding a decrease in interest rates. In March, US Factory Orders increased by 4.3% compared to the previous month’s 0.5%, falling slightly below the projected 4.5%. Meanwhile, Apple (APPL) and Amazon (AMZN) stocks have decreased 3.5% and 1%, respectively, with Apple facing sales challenges in China and concerns over tariffs. Apple’s Q1 earnings show an EPS of $1.65, above the expected $1.62, and revenue of $95.36 billion, higher than the projected $94.53 billion. Amazon’s stock also dropped after its cloud revenue growth failed to meet expectations. The company’s Q1 earnings show an EPS of $1.59, surpassing the forecasted $1.38, but falling short of the expected revenue of $155.7 billion. Data from the Chicago Board of Trade (CBOT) suggests an 88 basis point decrease in interest rates by the end of the year, according to the December 2025 fed funds rate futures contract. The Dow Jones is still showing a downward trend, but it is currently testing the 50-day Simple Moving Average (SMA) at 41,271. A break above this level could lead to further gains past the 42,000 mark, with a target of the 200-day SMA at 42,281. On the other hand, a drop below 41,000 could lead to the 40,000 support level, followed by the 20-day SMA at 39,705. The next support level would be the April 23 low of 39,486, with the potential to bridge the gap between April 22 and 23 created by the market jump.