NEW YORK (dpa-AFX) – Economic hope and interest rate fears have tossed the US stock exchanges back and forth on Friday after a surprisingly strong US labor market report. The indices started strong, quickly drifted into the red, and then recovered just as quickly. De0r Dow Jones Industrial (Dow Jones 30 Industrial) gained 1.16 percent to 31,283.46 points just under two hours before the market closed. On a weekly basis, the most important American stock index is heading for a plus of 1.1 percent.
The market-wide S&P 500 recently gained 1.13 percent to 3811.12 points. After a temporary renewed sell-off in the technology-heavy NASDAQ 100, investors also came back there, as the plus of 0.82 percent to 12 566.01 points showed.
According to the job report, the return on ten-year paper temporarily increased to 1.6 percent, most recently it was 1.55 percent. Rising interest rates are an expression of growth optimism and fears of inflation. Both go back to the very loose financial policy of the new US administration, which is aiming for a trillion dollar economic stimulus package. However, when interest rates rise, bonds will again become an alternative for equity investors. The rise in interest rates had already slowed the stock exchanges considerably in the past few days.
The better economic data turned out, the greater the doubts of the financial markets about a continued expansionary monetary policy, said economist Thomas Gitzel from VP Bank. However, the labor market still lacked millions of jobs until normality could be spoken of again, according to Helaba. The US Federal Reserve has repeatedly affirmed that the labor market is still showing weaknesses, according to the economists. This means that nothing will change in the expansionary monetary policy for the time being.
In the Dow, Cisco was in first place with an increase of 4.1 percent. The US bank JPMorgan had upgraded the paper of the network specialist from “neutral” to “overweight”. Corporate spending on IT recovered faster than expected, Cisco is on the right track with the switch to rental software and the shares are still undervalued in an industry comparison, analyst Samik Chatterjee justified his revaluation.
The shares of the software company Oracle and the specialist for data storage solutions Western Digital also gained significantly after upgrading by analysts: Oracle almost seven percent and Western Digital more than eight percent.
Oil prices rose sharply again. The oil network Opec + initially did not increase its production and thus caused a surprise on the markets. The shareholders of oil companies were pleased about this, because their prices also increased significantly. Chevron, Occidental Petroleum and ConocoPhillips gained up to five percent./ajx/he
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