US stocks rise despite strong jobs data…and Nasdaq rises 1.60%
Despite the strong jobs data, which some saw as an opportunity for the Federal Reserve to impose its strict policies, US stocks returned to their rise in trading on the last days of the week, with the Nasdaq index jumping 1.60%, and the Dow Jones Industrial Average adding 288 points.
After the weak start for stocks, against the backdrop of data that confirmed to many that the Federal Reserve would raise interest rates at its meeting early next month, the main stock indices moved to the green zone, allowing them to erase the weekly loss, led by technology company stocks, some of which rose more than 4%.
By the end of Friday trading, the points added to the Dow Jones index represented 0.87%, while the increase in the broader S&P 500 index was 1.18%. In the worst moments of the trading session, the Dow Jones lost more than 270 points, while the loss of the other two indexes approached 1%.
On Friday, the US Department of Labor announced that hiring by US companies in September increased beyond expectations, in what was considered an indication that the US economy is still capable of facing difficulties, and a new justification for further raising US interest rates.
Some analysts attributed the shift in stock price trends at the midpoint of the trading session to the rise in wages in September, less than expectations, and some saw the decline in bond yields as a stronger reason, but market data published by some brokerage firms showed reaching the oversold zone, especially after exceeding the loss. The S&P 500 index rose 8% this week, compared to the highest level recorded this year.
In Europe, stocks ended trading on a higher note on Friday, after a turbulent week influenced by gains in US stocks, but they recorded weekly losses after the publication of the US jobs report, which caused bond yields to rise.
The STOXX 600 index rose 0.8% on Friday, which was not enough to erase the weekly loss.
The index recorded its lowest level in six months earlier this week, coinciding with the rise in US and European bond yields to the highest level in more than two decades, driven by strong US data and expectations that borrowing costs will remain high for a longer period.
Most European sub-sectors ended the day on the rise, with the retail sector rising by 2.3%, with growing expectations for strong results for the third quarter.
In a related manner, oil prices rose today, Friday, at settlement, but recorded the largest weekly loss since March, after another partial lifting of the fuel export ban in Russia fueled concerns about demand, due to the challenges facing the macroeconomy.
Brent crude futures increased 51 cents to $84.58 upon settlement, while US West Texas Intermediate crude futures rose 48 cents to $82.79.
Brent fell 11% and West Texas fell more than 8% this week, due to fears that high interest rates will slow global growth and hurt fuel demand. OPEC+’s decisions to continue reducing production until the end of the year did not succeed in stopping the decline in prices.
Analysts said that the jobs data announced on Friday morning, which showed the strength of the US economy despite the repeated interest hikes, helped the dollar rise and increase bets on raising interest rates again in 2023. The rise in the dollar usually negatively affects the demand for oil, as It makes it relatively more expensive for holders of other currencies.
2023-10-06 22:31:14
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