Stocks in the US have begun higher on Friday after the jobs report for August was released. Almost immediately after the bell signaled to open, the Nasdaq index rose by 0.7%, the Dow Jones made 0.5%, and the S&P 500 reached an additional 0.7%.

Better Job Rates Added to the US Economy

These increases come after the market saw volatile trades on Thursday that sent all three indexes lower before they recorded losses. Dow Jones and S&P 500, thus, ended the first day of September in the green area.

Reports from the Department of Labor that was released on Friday revealed 315,000 additional jobs entered the US economy while unemployment increased to 3.7%. Earlier speculations by Economists envisaged that just 298,000 new jobs would be added to the economy while they expected the unemployment rates to hold still at 3.5%.

Income gains were a bit moderated in August as the average earnings per hour rose by 0.3% M-o-M and by 5.2% in one year. Both recordings fell 0.1% short of their expected marks.

Perhaps the most important part of the jobs report released on Friday is the number of new entrants into the American job market in August. It has got the country’s workforce to 62.4% and it is the highest rate since March 2020.

The Fed is Still Hawkish

Investors had their absolute attention on the report before it was released because of Jerome Powell’s asserted hawkish position during the Jackson Hole event last week. Powell said he was ready for a less labor rate to secure lesser prices.

An Economist with Capital Economics, Michael Pearce, said that a slow payroll pace in August, combined with a big recovery in the workforce, and some wage increases might favor a 50 basis points interest rate increase. But Fed officials will now put more pressure on the consumer price index for August, which is due to be released in two weeks.

The stock value of Lululemon went up by over 11% at the early stage of trading after its quarterly earnings report beat the estimates by Wall Street. The company equally increased its yearly profit beyond the forecast of several analysts.

Broadcom’s shares equally experienced a raise on Friday amid the market’s push following its healthy sales report for this quarter. It helped to reduce the fears of a recession in the demand for chips.