In the US, companies are creating jobs outside of agriculture. Investors fear the Fed could use this as an argument to push for more large rate hikes. Experts expect an increase of 50 basis points in December and February.
The strong US job market data has triggered new interest rate fears among US investors and weighed on Wall Street. According to experts, strong job numbers could shake the interest rate expectations of stock market traders, who had recently assumed that the US Federal Reserve would slow down its rate of increase. The Dow Jones gained 0.1 percent to 34,429.88 points. The tech-heavy Nasdaq fell 0.2 percent to 11,461.50 and the broad-based S
Jobs data showed the addition of 263,000 US nonfarm payroll jobs in November compared to 261,000 the previous month. Experts had forecast a drop to 200,000. "The strong job creation reinforces the Fed's argument that much more needs to be done to bring inflation under control," said James Knightley, chief economist at ING Bank.
The economist expects further rate hikes of 50 basis points in December and February, although the tightening could last longer. According to experts, investors are hoping for a faster slowdown. "We think the market is expecting monetary easing in late 2023," said Mike Schumacher, strategist at investment bank Wells Fargo. But this was hasty.
Oil prices turned negative again after the China rally of the past few days. North Sea Brent was down 2.4 percent at $85.33 a barrel (159 liters) and light US grade WTI fell 1.8 percent to $79.94 a barrel. Investors are waiting for the meeting of the OPEC oil association on Sunday and the price cap for Russian oil from Monday. Shortly before, after lengthy hesitation, Poland had agreed to the limit of USD 60 per barrel aimed for by the European Union. According to European Commission President Ursula von der Leyen, the new price cap will be adjustable over time. The aim is to be able to react to market developments.
The new interest rate fears pushed growth stocks like Apple and Amazon down 0.4 percent and 1.4 percent respectively. Shares in semiconductor company Marvell fell 1.5 percent after disappointing quarterly results. The shares of the carmaker Ford also lost 1.5 percent after lower sales figures for November. The automation software developer UiPath, on the other hand, increased by 12.5 percent according to figures.