News overnight on Thursday that China confirmed lower-level ministerial trade talks with the U.S. would be held next week, sent global markets and the U.S. futures jacking higher ahead of Friday’s open. When the jobs number was released an hour ahead of the opening bell and came in much stronger than anticipated at 312,000 new jobs allegedly created in December, the futures rolled around indecisively. By the opening bell, however, the Dow Jones Industrials Index started the day off up 208.70 points.
What initially looked like a normal reaction bounce following Thursday’s brutal, higher-volume 606-point Dow sell-off turned into an algo-fest after Fed Chairman Jerome Powell spoke at the American Economic Association’s annual meeting. While the strong jobs number earlier Friday morning might have been expected to keep the Fed on track to raise rates further this year, Powell toed a dovish line.
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