Everyone knows that the market has been an incredibly volatile place to be as of late. With global economic concerns weighing, we've seen incredible movement in the market. However, late last week, we started to see incredibly strong movement in US stocks after the non-farm payroll report. Today, we'll talk about what we saw from the report, why it caused US stocks to head upward, whether or not we can expect a strong week next week, and how binary options traders can take advantage of the trends.
US Jobs Report Excites Investors
As mentioned above, the non-farm payrolls report for the month of June was released late last week. This is incredibly important data for the market. After all, positive jobs growth shows that economic conditions are improving. Negative growth will show a contracting economy. Considering the incredibly low jobs growth experienced in the month of May, the United States needed a strong June, and that's exactly what happened.
Last week, it was announced that in the month of June 287,000 jobs were added to the United States economy. This number came in well ahead of economists expectations of 175,000. Not to mention, it shows incredible growth over May's total of 38,000 job additions.
What Does This Have To Do With Markets
While it may seem as though the amount of jobs that were added to the United States economy and market conditions are two completely different topics. However, that couldn't be further from the case. The truth is that markets are widely dependent on economic activities in the regions they represent. Therefore, when economic conditions are positive, we can expect to see growth. Adversely, when economic conditions are negative, we can expect to see declines.
Growth in jobs is a key economic statistic. After all, if economic conditions are positive, more orders are being placed and there is more need for employees. Adversely, when economic conditions are negative, less orders are placed and hiring slows. So, when a strong jobs report is released, we can generally expect to see gains in the market associated with the report.
Will US Markets Have A Strong Week?
Overall, the answer is yes. However, it's important to remember that the Brexit concerns have not dwindled. This will likely make for a turbulent ride upward. So, while we'll see upward movement overall, we're definitely going to see downward movement here and there throughout the trading sessions next week.
How Binary Options Traders Can Take Advantage Of The Trends
In the week ahead, we're likely to see positive movement overall. With that said, there will be downward movement too. The best idea throughout the week is going to be to watch US indices for the dips. When you see dips in the stock chart, they will prove to be entrance signals for call options. So, buy the call and ride the trend up to the profit.
What Do You Think?
Where do you think US stocks are headed this week? Join the discussion in the comments below!
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