Wall Street collapses on fears of Fed policy tightening (Getty)
US equities and bonds ended the first week of the final quarter of the year in painful falls after the good employment news was a disaster for them as it paved the way for Federal Reserve monetary policy. harder.
It’s still Great start to the weekmarket momentum slowed, before the Nasdaq lost 3.8% of its value on Friday and the S&P 500 index fell 2.8%, while the Dow Jones Industrial Average lost just 2.11 %, after the data just released in Washington showed an addition of 263,000 New jobs, to decrease the rate Unemployment to 3.5%, again approaching the lowest level in over half a century.
Despite the heavy losses of the last days of the week, the major equity indices managed to close it higher, albeit far below the hopes that had been held after the gains of the first two days. The Dow Jones Industrial Average rose 2% on the week, the S&P 500 gained 1.5%, while the Nasdaq only added 0.8% to its value over the same period.
While the labor market data was a cool and peaceful response to the Fed’s intentions to keep interest rates at high levels for some time, the 2-year US Treasury yield rose to exceed 4.30%, while the 10-year bond yield approached 3.90% at a new level.
The oil markets maintained their recovery afterwards OPEC + decision By reducing production by two million barrels, starting next month, the price of Brent crude rose 3.91%, to $ 98.11, while the price of US West Texas crude jumped 4.91%. at $ 92.79 per barrel.
Meanwhile, after the release of the employment report, spot gold prices fell 0.6% to $ 1,700 an ounce.
“The market looks to the better-than-expected employment report as a further stimulus for the Federal Reserve to raise rates by another 75 basis points in its early November meeting,” said the Reuters news agency. Increased interest is one of the most important factors frustrating the price of the precious metal, as interest represents the opportunity cost for them.
European equities were not spared from the aftermath of the employment report, as the pan-European Stoxx 600 index fell 1.2%, posting the third consecutive session of losses.