NEW YORK (dpa-AFX) – After a surprisingly strong US labor market report, investors on Friday saw the interim losses as an opportunity to buy. The leading index Dow Jones Industrial gained 1.85 percent to 31,496.30 points at the end of the day, which is an almost equally high plus on a weekly basis. “Old Economy” stocks from the energy and industrial sectors rose, while technology stocks, which had recently come under fire for high valuations, ultimately recovered significantly.
The market-wide S&P 500 increased by 1.95 percent to 3841.94 points at the end of the week. In the technology-heavy Nasdaq 100, investors also came back after a temporary slide to a low since the end of November: the index closed 1.64 percent higher to 12,668.51 points.
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. / Ajx / he
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