Market cheers employment slump, why?

US employment figures released last Friday showed a gain of 29,000 jobs, significantly below the estimated 90,000.

With employment stability, one of the Federal Reserve's (Fed) key mandates, showing a decline, analysis suggests that the Fed's justification for further interest rate hikes has weakened. Fed officials, including the New York Federal Reserve President, have hinted at the possibility of adjusting the pace of rate hikes, which the market interpreted positively.

Its market capitalization, having surpassed $5 trillion, is now heading towards $6 trillion, and the current stock price level relative to earnings is not considered excessive. The market assesses that Nvidia's stock price level relative to its earnings is still not excessively expensive.

Meanwhile, semiconductor equipment stocks continued their rally on expectations of capacity expansion, while some memory semiconductor-related stocks, such as Micron, declined due to profit-taking sales.

As upward pressure on oil prices intensified due to geopolitical risks from the Middle East, G7 countries, including France, decided to supply crude oil and diesel to alleviate inflationary burdens.

This release plan includes not only crude oil but also an increase in diesel supply, analyzed as an attempt to mitigate inflationary pressures caused by high oil prices.

This release of strategic reserves includes diesel, which is imposing a significant economic burden due to its high price, and is expected to contribute to energy market stability.

With growing confidence in semiconductor capacity expansion, equipment stocks surged by over 3%, continuing their endless rally.

Micron Technology saw a slight decline as an adjustment following its previous day's rise, and it is noted that further analysis is needed to determine the reasons for the decline in storage-related stocks like SanDisk and Western Digital.

Overall signs of a slowdown in the job market appeared, with the US unemployment rate rising slightly from 4.1% to 4.2%.

The market interpreted the employment slump as a reason for the Federal Reserve (Fed) to be less likely to raise interest rates further, embracing it as a positive development. This interpretation drove up major indices and positively impacted the stock market.