The Dow Jones Industrial Average closed higher on Friday (Nov 4) in response to the release of the US Nonfarm Payrolls report, comments from Federal Reserve officials on the outlook for interest rates. including news about the opening of the Chinese country
The Dow Jones Industrial Average closed at 32,403.22, up 401.97 or + 1.26%, the S&P 500 closed at 3,770.55, up 50.66 or + 1.36% and the Nasdaq got closed at 10,475.26, up 132.31 or + 1.28%.
But last week The Dow fell 1.39% after a four-week gain, the S & P500 fell 3.34%, and the Nasdaq fell 5.65%, the largest weekly percentage drop since January.
The New York Stock Exchange surged after the release of US employment data indicated that The unemployment rate rose in October. This shows signs of a slowdown in the labor market. And it could allow the Fed to cut interest rates in December.
The US Department of Labor said Nonfarm Payrolls increased by 261,000 in October. It was higher than analysts’ estimates of 200,000, but slowed from 315,000 in September. The unemployment rate rose to 3.7 percent from 3.5 percent in September.
The market also gained momentum after Chicago Fed Chairman Charles Evans said: There is a possibility that the Fed will consider stopping interest rate hikes in the future.
Investors had predicted that The Fed will raise interest rates to just 0.50% at its December monetary policy meeting. After the release of the non-farm payroll report
The FedWatch tool from the CME group indicates that investors weighed around 62% and that the Fed will raise interest rates by 0.50% at its December 13-14 meeting, after the previous session. Investors only weighed 51.5% prior to the release of the employment data.
Additionally, the market was also driven by news that China is considering easing COVID-19 control measures and could open the country in March 2023.
Chinese economist Hao Hong The tweet states that Chinese authorities are forming a committee to consider opening up the country. and is reviewing COVID-19 data overseas to assess the situation if the country is open China aims to relax regulations to control COVID-19. In March 2023
Shares of Chinese companies registered in the US In the wake of the news, Alibaba shares closed up 7.05% and JD.com jumped 9.74% .Hope also raised the price of commodities like copper and helped strengthen materials inventories, up 3.41%.
Singles who grew up, such as Starbucks Corp, were up 8.48% after reporting higher-than-expected quarterly sales and profits. And food delivery company Dordas jumped 8.32% after reporting better-than-expected earnings.
for this week Investors will focus on releasing US inflation data. including the mid-term elections in the United States on November 8.
