Stocks Benefited From Better Than Expected Economic Data

On Wednesday, the Dow Jones Industrial Average, as well as S&P 500, saw gains thanks to better than expected economic data. Importantly, a report from ADP showed private payrolls stateside falling by 2.76 million in May. This result is better than expected, as it was expected that private payrolls would fall by 8.75 million according to economists. This report had a positive impact on U.S. stocks.

For example, the Dow Jones Industrial Average saw gains for the third day in a row. The Dow Jones surged 527 points or just over 2% on Wednesday. Moreover, the S&P 500 strengthened its position for the fourth day in a row.

Stocks, investor sentiment and economic recovery

Stocks in Asia were mixed on June 4 as investors assessed the information connected with economic recovery from the coronavirus pandemic.

Japan’s Nikkei 225 added 0.36% to close at 22,695.74. At the same time, the Topix index gained 0.3% to close at 1,603.82.

Moreover, South Korea’s Kospi index advanced 0.19% to close at 2,151.18.

However, mainland Chinese stocks were mixed on Thursday. The Shenzhen Component added 0.278% to about 11,139.26. In the meantime, the Shanghai Component fell 0.14% to around 2,919.25.

Also, Hong Kong’s Hang Seng index fell 0.27% as of its final hour of trading.

In Australia, S&P/ASX 200 advanced 0.84% to 5,991.80. Australia’s retail sales for April fell to a seasonally adjusted 17.7% in April. This information came from Australia’s Bureau of Statistics.

The coronavirus pandemic became the main topic of discussion among investors, analysts, and government officials. It will take time to deal with all problems associated with the pandemic. It won’t be easy to get the economy back on track without cooperation. Hopefully, governments are ready to spend billions of dollars and support their economies. Moreover, to achieve a sustainable rally when it comes to markets, strong signs of economic or earnings recovery are important. Otherwise, it will be tough to boost the markets.