>> A powerful stock market rally put a positive shine on a rocky first few trading days of the new year. The Dowsurging more than 700 points Friday, led by a solid rebound for raw material companies on the back of a surge in oil prices. Industrials and other economically sensitive sectors, like the financials, rode the rally all the way up as well.
The tech-heavy NASDAQ tacking on more than 4%. The global rally started in Asia on Beijing's Axis to show up the world's second biggest economy, and it continued after a blockbuster US jobs report. The US labor department on Friday announcing 312,000 new jobs created in December, far more than expected.
Adding to the positive news, hourly wages up more than forecasted last month. And even though the unemployment rate ticked up to 3.9%, that's still the lowest in a generation. But there's another side to all that good news. I'm Conway Gittens in New York. The report was strong enough to suggest the Federal Reserve has room to keep on raising interest rates.
The Fed raised rates four times last year, and has indicated plans to raise rates two more times this year. But that is at odds with President Trump who thinks the Federal Reserve is raising rates too fast. Also at odds with financial markets, which are pricing in no rate hikes for this year amid signs, or amid fears, of a global economic slowdown.
>> The rate increases->> But in a step to prove The Fed isn't tone deaf, Fed Chief Jerome Powell, speaking before an economic group Friday, signaled he is willing to tweak The Fed's rate hike projections if the economy softens. That fueled stock market gains even more, with investors less worried about aggressive Fed rate hikes, investors are turning attention to the US-China trade war.
The two sides are scheduled to sit down for talks in the coming week.