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Investing.com – Investing.com – Wall Street indices started today’s session sharply higher on earlier US data releases as unemployment data deepened dollar wounds, extended gold gains and shares, and reduced oil losses.
Although jobless claims were in line with expectations, the dollar interacted with them and worked off its losses as jobless claims were higher than last week, indicating that the economy is heading towards the recession according to plans and wishes.
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The US economy received 225,000 jobless claims as expected by experts, and the previous week’s reading was 216,000 jobless claims.
Thus, the average number of jobless claims in four weeks increased from 221.75 thousand to 221.000.
Shares… 20%
Jeremy Siegel, an economics professor at Wharton University, said US stocks could rise 20% in the first six months of 2023, when a bank ends its fight against inflation.
“Most of them think these gains will have to wait for the second half of the year, but I can see that happening in the first half,” economist Siegel added.
In addition to the optimistic outlook on the US stock market, the Wharton professor said the Fed could cut rates to 2% by the end of 2023.
Stocks or bonds?
Goldman Sachs (NYSE:) forecasts have indicated that bond yields will rise next year to outpace equity profits, amid investors’ preference for the safe acquisition of assets amid the risks of a possible global economic downturn.
The report issued by the bank indicated that the bond market has not experienced significant growth since the 2008 global financial crisis, due to declining yields on this asset in the aftermath of the global financial crisis and for nearly 14 years, which made the equities appear to be the only haven for investors seeking high returns.
In addition, the report attributed the bond market’s recovery to an increase in its interest payments relative to possible stock-exchange dividends next year.
Wall Street now
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Has risen 0.5%, or the equivalent of 167 points, to record 33046 levels
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The Standard & Poor’s index rose 24 points to 3806 points
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Technology stocks jumped 100 points to 10,780 points
gold
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It rose after the data release by 0.3%, or the equivalent of $5, to $1820
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And spot gold contracts rose $9, or 0.5%, to $1,815 an ounce.
Dollars and bonds
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Jarrah’s data deepens, dropping by 0.45% to 103.77 points.
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The 10-year yield fell to 3.864%, or 0.57%.
the oil
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U.S. Nymex crude fell more than 1.7% to near $77 a barrel
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The benchmark fell 1.5%, close to $82.6 a barrel
