The U.S. stock index Dow Jones Industrial Average hit the level of 17 thousand for the first time ever. That day, the Dow Jones index rose 0.3% during early trading hours and reached the score of 17,027.77, thus breaking out to a new all-time high. Experts said the main factor of growth was the statistics from the U.S. labor market. The report revealed a considerable decline in the unemployment rate that came in at a 6-year low of 6.1% for the first time since 2008. Such a positive shift could not but trigger the Dow’s growth.
Interestingly, most analysts claimed that the jobless rate was to be unchanged from May at 6.3%. However, this time the majority was wrong. Moreover, the number of long-term unemployed declined to 3.1 million in June.
Thus, experts say that means it is now easier to find a job than before. Separately, it is worth noting there was growth of vacancies in U.S. non-agricultural sector. In June alone, economy added 288,000 new jobs, while about 215 000 new workplaces had been expected.
“This is stuff that is going to lead to upward revisions of second quarter growth rates”, said Jim Paulsen, chief investment strategist at San Francisco-based Wells Capital Management.
Before that, the Dow Jones Industrial Average hit the record high of 16 thousand in November 2013, followed by the breach of the level of 15 thousand in May the same year.
