NY Stock Market Relieved by Weak Employment... Eyes on Dogecoin

Weak Employment Data Eases Rate Hike Concerns
Biden and Yellen Prepared Speeches Expecting Strong Jobs but Felt Awkward
Market Focuses on Musk's SNL Appearance and Dogecoin Rally
Coupang Falls Near IPO Price

[Asia Economy New York=Correspondent Baek Jong-min] Surprisingly weak employment data lifted the New York stock market. Analysts say this reflects expectations that the Federal Reserve's (Fed) accommodative monetary policy will continue. With weekly stock trading concluded, investors' attention is focused on the direction of Dogecoin.

Photo released by Elon Musk related to his appearance on SNL. The Shiba Inu, symbol of Dogecoin, was digitally added to the photo.

On the 7th (local time), the Dow Jones Industrial Average closed at 34,777.76, up 229.23 points (0.66%) from the previous session; the S&P 500 rose 30.98 points (0.74%) to 4,232.60; and the Nasdaq closed at 13,752.24, up 119.39 points (0.88%).

The Dow opened lower after the April employment report, released before the market opened, fell far short of expectations, but then reversed to an upward trend, continuing its record-high streak. As interest rate hike expectations declined, the Nasdaq index rose about 1.4% intraday.

The U.S. Department of Labor reported that nonfarm payrolls increased by only 266,000 in April. The Dow Jones consensus estimate was an increase of 1 million. The unemployment rate rose to 6.1%, up from 6.0% the previous month.

Analysts attribute the employment growth slowdown to reduced hiring by automakers due to semiconductor shortages, cuts in temporary jobs, and a decrease in job seekers.

Neel Kashkari, President of the Minneapolis Fed, said immediately after the employment report release, "The April employment report showed the importance of basing monetary policy on outcomes rather than forecasts," emphasizing there is no reason to change the accommodative monetary policy.

President Joe Biden and Treasury Secretary Janet Yellen, who had prepared speeches and briefings expecting positive employment data, instead stressed the need for investment to support employment recovery.

President Joe Biden said the April employment figures show there is still a long way to go.

Secretary Janet Yellen also stated at a White House briefing, "Today's numbers show that our economic recovery is not yet complete." She emphasized, "Our economy has suffered a very unusual shock, and the path back will not be entirely smooth."

The U.S. 10-year Treasury yield fell to 1.487% immediately after the employment data release but recovered to the 1.57% range by market close. Despite recent strong economic data and inflation concerns, U.S. Treasury yields have declined from the 1.7% range to the 1.5% range.

By individual stocks, Coinbase, the cryptocurrency exchange which had fallen to its listing reference price of $250 the day before, attempted a rebound with a 2.3% gain.

Coupang closed down 3.32% at $38.93. This marks the first time since its March listing on the New York Stock Exchange that Coupang’s closing price fell into the $30 range. Coupang’s listing price was $35.

In cryptocurrencies, Bitcoin and Dogecoin showed notable strength. Bitcoin traded around $57,000, up 2% compared to 24 hours earlier.

Dogecoin surged 13% to 66 cents ahead of Tesla CEO Elon Musk’s appearance on Saturday Night Live (SNL), which is just one day away.

On the day, Musk promoted his SNL appearance via Twitter, emphasizing that "cryptocurrencies are promising but should be invested in cautiously."

He also shared a photo of the SNL cast with a composite image of Dogecoin’s mascot, the Shiba Inu dog. As a result, Dogecoin, which had experienced a correction the day before, resumed its upward momentum and is challenging its previous high of 70 cents.