Global markets had a strong increase on Friday’s session. US markets had a strong performance, with the Dow rising by 701 points (+2.12%) and reaching a high of 743 points. The S&P 500 climbed +1.45%, securing its third consecutive weekly gain of 1.83%. The Nasdaq showed a rise of 1.07%, extending its streak of weekly gains to six, the longest since early 2020, with a total increase of 2.04%. These overnight gains were supported by positive labour market data, indicating moderate wage growth in May. This development suggests that the Federal Reserve may refrain from implementing a rate hike, shifting the language from "pause" to "skip" in order to emphasize that the rate hike cycle is not yet over. This decision allows the Fed the flexibility to assess the data as the impact of previous rate hikes gradually affects the economy.

The continuation of the US debt ceiling deal contributed to a positive market sentiment. US treasuries experienced a rise in value, while gold prices fell due to a strengthening US dollar. European markets also performed well, with the STOXX 50, FTSE, CAC, and DAX all showing gains of 1.6%, 1.6%, 1.9%, and 1.3% respectively. This positive market sentiment was supported by a decrease in eurozone inflation, providing reassurance to investors.SPI Futures up 76 points (+1.05%).

Catch up on all the latest with Henry Jennings on today’s Pre-Market Podcast.

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