Donald Trump celebrates as Dow Jones hits record high after strong July jobs report

'I have only just begun,' the President tweets in response to the latest numbers

Emily Shugerman
New York
Friday 04 August 2017 17:11 BST
President Donald Trump listens to West Virginia Governor Jim Justice speak at the President's campaign rally
President Donald Trump listens to West Virginia Governor Jim Justice speak at the President's campaign rally (Justin Merriman/Getty Images)

The Dow has reached another record high – a sign that the US economy is flourishing despite concerns about the President’s ability to deliver on his economic promises.

The stock market average was up by 36 points on Friday, as the US economy added even more jobs than previously expected.

The number of nonfarm jobs in the US increased by 209,000 in July, according to the Bureau of Labour Statistics – beating economists’ expectations of a 183,000 rise. The previously reported employment gain for June was increased from 222,000 to 231,000.

“Excellent Jobs Numbers just released - and I have only just begun,” Donald Trump tweeted. “Many job stifling regulations continue to fall. Movement back to USA!”

Mr Trump’s populist economic message has been in jeopardy of late, as companies that promised to keep jobs in the US after his election began to lay off workers. The failure of his party to repeal and replace Obamacare, and the growing shadow of a special counsel investigation, also threatened the strength of his message.

The uptick in US job and stock numbers, however, has been a rare bright spot for the beleaguered administration.

"I just want to state that, as you probably have noticed, the stock market hit an all-time record high today. Over 22,000," Mr Trump told reporters at the White House this week. "Again, today, the stock market hit the highest level that it has ever been."

The stock market growth continues a trend set under former President Barack Obama. The Dow has reached a new high, on average, once every seven days since recovering from the Great Recession in March 2013. The Dow hit a record high more than 100 times under Mr Obama after that point.

The US economy added 908,000 jobs during Barack Obama’s last five months in office, compared to 863,000 in the first five months of Mr Trump’s administration.

Experts say current US economic growth is steady, and looks unlikely to burst. In light of the good news, the Federal Reserve looks increasingly likely to start selling off its $4.5 trillion in bonds, and possibly raise interest rates for the third time this year.

"This combination of stronger wage, producer and consumer price inflation could nudge the market into thinking that its pricing of only one rate rise over the next 18 months may be too cautious," ING economists wrote in a report.

They added: "With the activity backdrop looking reasonable and the economy adding jobs in significant numbers we are looking for a December Fed rate hike followed by two further moves next year.”

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