Markets & Trump Jump For Joy On Jobs Report | Unemployment Benefits: Whats Next? - Daily Financial News & Insights for Friday, June 5, 2020

Markets & Trump Jump For Joy On Jobs Report – Daily Financial News Summary for Friday June 5, 2020 Stocks jumped Friday, closing off a very positive week. The Dow Jones increased by 3.0%, the S&P 500 by 2.4%, and the NASDAQ by 2.1%. The S&P 500 is currently up over 45% since its low on March 23 and is now only down by 1% for the year 2020. The NASDAQ has risen by over 47% since March 23 and is up by 9% since the start of 2020. The Dow Jones is down by 4.9% as a total for 2020 so far. The Labor Department’s monthly job report was released Friday morning. Surprisingly, it showed that 2.5 million jobs had been added to the United States economy during the month of May. Expectations were that 8 million more jobs would be lost. The unemployment rate was 14.7% in April and fell to 13.3% in May. The anticipated unemployment rate among economists was thought to be closer to 20% for May. The gain in jobs has been the largest one-month surge that the United States has had since 1939. Very rarely does the economy see over 1 million new jobs added in the span of one month. It seems likely that many of these restored jobs were just temporary layoffs due to the pandemic. Leisure and hospitality workers made up almost half of the 2.5 million jobs gained. Tony Bedikian of Citizens Bank stated: “Barring a second surge of Covid-19, the overall U.S. economy may have turned a corner, as evidenced by the surprise job gains today, even though it still remains to be seen exactly what the new normal will look like.” READ MORE: https://callputstrike.com/2020/06/05/markets-realdonaldtrump-jump-for-joy-on-jobs-report-daily-financial-news-summary-for-friday-june-5-2020/ Unemployment Benefits – How Long Will They Last? The global pandemic has affected the United States’ job market in a very significant way. Currently, the unemployment rate in the United States is almost 15%, which is an all-time high for the country. Last week alone, 1.877 million Americans applied for unemployment benefits. The government is currently providing each person who applies at $600 per week. However, this benefit will not last forever. How long will the benefits last for, and what will happen afterward? How Long Will Unemployment Benefits Last for? Typical unemployment benefits provide about 40% of a worker’s lost wages. The CARES Act was put into place to allow for an additional $600 per week per individual. As of right now, it is expected that the $600 per week will last until the end of July 2020. Democrats have discussed extending the payments into next year, but Republican lawmakers are not in favor of extending the policy. Many in the restaurant industry, as an example, have said until restaurants can operate at capacity, they won’t earn more than their unemployment benefits. This is often argued by occupations like restaurant waiters and waitresses that rely mostly on earning tips for their wages, where many restaurants can only operate at 25% capacity. READ MORE: https://callputstrike.com/2020/06/05/unemployment-benefits-how-long-will-they-last/