NEW YORK (awp international) – Wall Street did not rest on Friday either. After the US jobs report, investors remained nervous in anticipation of more rate hikes looming. The Dow Jones Industrial had lost one and a half percent at its peak, but also made a brief excursion into the plus. In the end, it fell by 0.30 percent to 32,899.37 points. In the course of the week he lost almost the same amount.
Rollercoaster-like fluctuations shaped the stock market these days, it said. On the Nasdaq stock exchange, the technology-heavy Nasdaq 100 had even lost two and a half percent or gained half a percent on Friday in the extreme. In the end, with a discount of 1.22 percent to 12,693.54 points, losses were more significant than in the Dow. The third US index in the bunch, the broader S&P 500 fell 0.57 percent to 4123.34 points.
Investors are currently facing three problems at the same time: slowing growth, higher costs and rising interest rates, said market strategist Sean Darby of investment bank Jefferies. Although the US economy created more jobs than expected in April, this has a downside for investors: According to NordLB analyst Tobias Basse, the US Federal Reserve Bank’s tightening of monetary policy remains under pressure.
“With their measures, the central banks also have to accept harmful side effects on the economy in the current situation. Fighting inflation now has priority,” said chief economist Ulrich Kater from Dekabank. Accordingly, the latest labor market report on Friday was viewed particularly critically. This showed that the US economy had created more jobs in April than expected.
Looking at individual values, oil companies were once again a positive exception due to a rising oil price. As the debate over a European oil embargo on Russia rages on, prices were boosted by the US announcement that strategic oil reserves would begin to be refilled this fall. Chevron expanded their daily gain to 2.7 percent and were the best Dow value.
In contrast, it was a gloomy day for investors in the US sporting goods sector. While Under Armor shares slipped more than a quarter by the numbers, Nike shares were included in the Dow at a 3.5 percent discount. Under Armor disappointed investors not only with a quarterly loss, but also with the full-year outlook. UBS analyst Jay Sole now sees a correction risk of up to 19 percent for earnings estimates on the market.
Meanwhile, the now record-low Peloton shares on the Nasdaq are not getting back on their feet. The papers of the fitness specialist, once traded as a big corona winner, fell again by 7.7 percent on Friday. As the Bloomberg news agency reported, citing circles, the company is currently looking for a large investor who could get involved with 20 percent of the shares.
The euro followed the ebb and flow of equity markets in the $1.05 to $1.06 range. Most recently, the price settled at $1.0548 in the mid-day range. The European Central Bank (ECB) set the reference rate at 1.0570 (Thursday: 1.0568) dollars. The dollar thus cost 0.9461 euros.
US Treasuries were slightly lighter on Friday. The 10-year bond futures contract fell 0.29 percent to 117.72 points. The opposite return rose to 3.13 percent during this term. It was thus at the level of the end of 2018./tih/he
— By Timo Hausdorf, dpa-AFX —
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