S&P 500 Gains as Steady Unemployment Eases Iran War Concerns

The S&P 500 (SPX) opened Friday’s trading session in the green following the release of new labor market data.

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In April, the unemployment rate tallied at 4.3%, unchanged from March and in line with the consensus estimate. In addition, nonfarm payrolls additions totaled 115,000, well above the estimate of 65,000. The data helped ease concerns about labor market uncertainty tied to the U.S.-Iran war.

Rising Inflation Threatens Wage Growth

At the same time, wage growth could be offset by the inflationary effects of the war caused by higher energy prices. Wages rose by 3.6% year-over-year in April, while inflation for the month is expected to be around 4%.

Earlier this week, the U.S. issued a 14-point memorandum of understanding to end the war with Iran. Tehran is expected to provide its response today as the two sides continue to exchange strikes in the Strait of Hormuz despite a ceasefire.