The key indicators of Wall Street returned to a circle of pressures and negative ground, which failed to follow the strong session on Thursday, as the positive news from the labor market finally intensified the worries about the Fed aggression rather than strengthened the investment mood.
Friday’s strong losses pushed the US market to the “red” on a weekly basis, with the three indices recording losses of around 1%.
After the chill yesterday from ADP data for wages in the private sector in May, which moved much lower than estimated, the official report of the Ministry of Labor published today showed a diametrically opposite image.
Specifically, the Ministry announced that the US economy added 390,000 jobs in Mayfar exceeding the average analyst estimate in Reuters for 318.00 new positions.
In April, the labor market had added 428,000 jobs, while in the previous 12 months the number was generally over 400,000, bringing employment levels to 1% from the pre-pandemic era.
“Despite the slight decline, the labor market remains clearly tight, dispelling fears of a recession,” Daniel Zhao, senior glassdoor economist, told CNBC. “We continue to see signs of a healthy and competitive labor market, with no indication that the brake is on at the moment,” he added.
Alongside, average hourly wage increased by 0.3% from April, slightly lower than the estimate for + 0.4%. On an annual basis, wages increased at a rate of 5.2%, as forecast.
On the contrary, of course, the strong labor market dynamics mean that the Fed has no reason to stop raising interest rates.
“Such strong numbers are likely to dampen hopes that the Fed will consider a cessation of interest rate hikes after those of June / July,” said Tom Essaye of the Sevens Report.
In this climate, after all, the 10 year performance of the USA strengthened today by 4.1 basis points to 2.955%, which as usual strengthened the pressures on the development titles of technology.
In any case, the pace at which concerns continue to be expressed about the course of the American economy continues unabated.
Among other things, echoing the positions of JP Morgan CEO Jamie Damon for upcoming “financial hurricane”Goldman Sachs president and COO John Waldron said yesterday that the current economic turmoil is one of worst ever encountered in his career.
“Obviously we have gone through many cycles, but the number of simultaneous vibrations in the system, for me is unprecedented,” he said, speaking at a banking conference.
Even more ominous was the head of the world’s largest BlackRock fund manager, Larry Fink, who estimated that inflation would keep running at a high pace for several more years as the problem is mainly due to the narrowing of the supply chain.
As stated by the CEO of BlackRock, which manages funds of 9.6 trillion. The Fed does not have the tools to fix logistics problems in the economy on its own, which he says will keep market volatility high.
Indicators – Statistics
On the dashboard, the industrial index Dow Jones slipped by about 350 points or 1.05% to 32,898.91, the widened S&P 500 recorded losses of 1.64% to 4,108.44 points, while the technologically weighted Nasdaq fell 2.47% to 12,012.73 points.
In week all three indices closed with a negative sign. The Dow was down 0.95%, the S&P 500 was down -1.2% and the Nasdaq was down 1%.
Of the 30 stocks that make up the industrial index, only 4 remained on positive ground, while the biggest losses (over 3%) were recorded by Apple and Intel. In particular, Apple closed at -3.86%, after a negative report by Morgan Stanley.
Pressures in the technology sector brought Micron Technology to -7.2%, while Nvidia fell by 4.45%. THE Tesla fell -9.22% against the backdrop of Elon Musk’s statement that he wants to cut 10% of its potentialas he has “a very bad feeling about the economy”.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
