After a four-day dry spell, Wall Street is rotating properly again for the weekend. The trigger is the US labor market report for October. Signals from China also ensure an upward trend.
The guesswork about the future interest rate rate of the American Federal Reserve has sent the US stock exchanges on a rollercoaster ride. US October jobs data presented a mixed picture, giving investors room for speculation. The Dow Jones index closed 1.3 percent higher at 32,403 points after volatile trading. The tech-heavy Nasdaq advanced 1.3 percent to 10,475 points. The broad S
A rise in the US unemployment rate in October initially fueled investors' hopes that the US Federal Reserve would make fewer major interest rate hikes. While the stock markets rose, the US dollar fell accordingly. The dollar index lost 1.9 percent to 110.73 points. However, according to analysts, the data as a whole does not provide any clear indications that the Fed could really step on the brakes.
At 261,000 non-agricultural jobs, job creation was stronger than analysts had expected. "There's a real battle going on here between bulls and bears," said Dennis Dick, market analyst at broker Triple D Trading. “The bears say the Fed won't pivot until the data cools, while the bulls say much of this bearishness is already priced in.” The robust labor market was one of the factors that allowed the US Federal Reserve to continue raising interest rates.
Posts on social media suggesting a shift away from China's zero-Covid policy in March eased investor fears of an economic slowdown in the Middle Kingdom. In Europe, the stock exchanges had risen sharply as a result.
U.S.-listed shares of Chinese companies, including Alibaba, JD.com and Baidu, also rose by between 7 percent and nearly 10 percent. Hopes for the economy fueled speculation that China's demand for raw materials would increase, which pushed up oil prices. The price of North Sea Brent rose by 4.2 percent to $98.62 per barrel (159 liters). Traders also justified the increase with an expected supply shortage due to the planned EU embargo on Russian oil.
A number of company balance sheets also caused movement on the stock market. A forecast reduction brought Paypal a price loss of almost two percent. The payment service is more pessimistic about the year as a whole in view of an expected economic downturn. On the other hand, quarterly sales above market expectations and an optimistic view of the end of the year encouraged investors to invest in DoorDash. Shares of the food supplier rose more than eight percent.
Starbucks shares also rose by more than eight percent. The coffeehouse chain had exceeded sales expectations thanks to strong demand in the USA and business in China that was less bad than feared.
