U.S stock indexes closed lower after a mixed March job data and after the tension escalated by a U.S missile strike on Syria. Nasdaq Composite fell 1 point and closed at 5877, S&P 500 down 1 point and closed at 2355 and the Dow Jones Industrial Average shed 6 points and closed at 20656.
In an economic front, U.S job data came lower than expected. According to U.S labor department in March only 98000 nonfarm payrolls were added, which is smallest growth since May 2016 versus the 175000 expected. On the other hand Jobless rate also fell to its lowest level since May 2007, which is now at 4.5% from 4.7% in February. Average hourly wage also increase 0.2% as expected.
U.S dollar fell sharply initially after a data release on less than expected U.S jobs report. But after initial weakness it bounced back when market analyzed that weakness in job report snowstorm partially contributed along with the layoffs in the beat up retail sector. Market also saw a decrease in jobless rate as sign of strength.
U.S dollar upside movement further strengthened by the comments of Federal Reserve New York president William Dudley, In his talk he reaffirmed that Federal reserve is getting close to decrease its bond portfolio by 4.5$ trillion and this process would put a little pause in the interest increase plan by the central Bank.
After Syria’s use of chemical weapon, U.S missile strike last week affected the U.S dollar and financial markets in Asian trading hours, which help gold and oil prices move higher.
Due to missile strike in Syria, concerns of spreading conflicts in the oil producing region have escalated and Oil prices have jumped. Brent curde oil increased 0.6% to 55.24$ a barrel and Nymex crude oil was up 1% to 52.24$/ highest level since March 7.