FRANKFURT/NEW YORK, Dec 29 (Reuters) – Weekly U.S. jobs data is giving investors on Wall Street optimism. The Dow Jones.DJI standard values index closed up 1.1% on Thursday at 33,220 points. The tech-heavy Nasdaq.IXIC advanced 2.6% to 10,478 points. The broad S&P 500.SPX gained 1.7% to 3849 points.
Initial jobless claims in the United States rose as strongly as expected to 225,000 from 216,000 the previous week. “It’s definitely a sign of a slowdown in the labor market,” said Peter Cardillo, chief economist at investment firm Spartan. Investors are hoping a slowing labor market will prompt the US Federal Reserve and other major central banks to embrace smaller interest rate hikes.
However, today’s price action is also related to the fact that the market has been doing rather poorly in recent days due to concerns about the number of infections following the recent easing in China. “We are at the end of the year. What we’re seeing is partly bargain hunting,” Cardillo said.
RISING BONDS – DOLLARS AND OIL UNDER PRESSURE
Investors once again took to US government bonds. In turn, yields fell. Ten-year US10YT=RR bonds returned 3.8277% vs. 3.886% the previous day. This supported Nasdaq stocks like NetflixNFLX.O, AppleAAPL.O and MicrosoftMSFT.O, which gained as much as 5.1%. Rising inflation and rising interest rates will devalue the future earnings of these high-growth companies, experts say.
Improved sentiment weighed on the US currency, considered a safe haven in times of crisis. The dollar index.DXY fell 0.5% to 103.93 points.
At the same time, doubts over fuel demand following the wave of infections in China pushed oil prices into the red. The North Sea variety BrentLCOc1 fell 1.2% to $82.27 a barrel (159 liters). The US variety WTICLc1 fell 0.4% to $78.66 a barrel. “Oil prices fall for a second day, erasing some of the pre-Christmas rally,” said Craig Erlam, market analyst at trading house Oanda.
TESLA UP AFTER MUSK COMMENT
A comment from Tesla boss Elon Musk helped the stock get back on its feet. Shares of the US electric car maker were 8% higher. Rivals Lucid and Rivian were also up more than five percent each. “Don’t be too discouraged by the madness of the stock market,” Musk wrote in an email to workers. He firmly believes that Tesla will become the most valuable company in the world in the long term. Investors are worried about Tesla production in Shanghai.
Some also worried that Musk’s tweets and the bumpy takeover of Twitter were damaging the brand. “Whether Tesla’s stock market is going crazy or not, Elon Musk has definitely done his company’s stock a disservice this year,” said investment strategist Jürgen Molnar of brokerage RoboMarkets.
|T-bonds||Price Update||absolutely change||Performance Update||Return the day before|
Statistics for Nyse and Nasdaq
|Number of shares traded in millions||715||4,084|
|Number of shares with price gains||3,473||3,740|
|Number of shares with price losses||723||870|
|Number of unchanged values||223||416|
US Dow Jones index closes in positive territory
Symbolic photo: Image by Reto Keller on Pixabay
Here you can find current live streaming episodes. No more Web3, NFT and Metaverse