In a week of intense volatility due to market concerns over the appearance of the Omicron mutation, the Wall meeting on Friday followed a similar pace: it started with positive trends to return deep into negative ground and finally the main indicators closed at ” red “but far from the lows of the day.
The emphatic upward reaction of the American market in yesterday’s session against its sell off … Omicron that preceded the week did not continue. Thus, all three main indicators of the Wall lost in the 5-day period with a negative protagonist Nasdaq.
Investors have shown that they expect more information about the new coronavirus mutation, mainly about its transmissibility, but also whether it can go beyond the protection provided by vaccines.
The market climate was aggravated today and the disappointing data for the jobs in November in the USA that were announced today. particularly new jobs grew at a slower pace than expected in November, although companies have been more aggressive in hiring workers, which shows that the largest labor shortage for decades continues to slow down the economic recovery.
The U.S. economy added 210,000 new jobs last month, with recruitment growth the smallest in a year and well below expectations. Economists polled by Wall Street expected 573,000 new jobs.
The unemployment rate in the US fell to 4.2% from 4.6%, recording a new pandemic low. However, economists say the official unemployment rate is probably a few percentage points lower than the real thing.
In an encouraging sign for the labor market, the size of the workforce has increased significantly. About 594,000 people rejoined the workforce in November. The so-called participation rate amounted to 61.8%
These figures are even more important for the US economy after the speech of the President of the Federal Reserve Jerome Powell in the House of Representatives on Wednesday, where he spoke about a strong economy and the prospect of the Fed tapping earlier than , what was expected, a development that would accelerate the increase in interest rates.
“The economy is very strong, with inflationary pressures high, so it’s time to look at the reduction in the asset purchase program we announced in November a few months earlier than expected,” said Jerome Powell.
“I do not think there was much evidence in the report today that plans to speed up tapering or raise interest rates sooner than expected,” the Federal Reserve said as the economy continued to recover, Mark Heppenstall said. Investment Leaders at Penn Mutual Asset Management.
“Some favorable trends in the data have shown an increase in the size of the workforce, which the Fed is likely to see as a ‘victory’ in the context of its goal of maximizing employment,” he added. According to estimates, the market is likely to face even greater volatility as the Fed’s priority to provide facilities for the sake of economic recovery declines and now the Federal Reserve is focusing on inflation.
Today, International Monetary Fund warns of rising inflationary pressures, especially in the US, and the uncertainty caused by the new coronavirus mutation, noting that US banks need to focus more on the risks of inflation.
In the meantime, the dollar gained about 0.1% to 96,223 points according to the ICE US Dollar index, while its performance 10-year government bond The US dollar fell 10.5 basis points to 1.342%, the lowest level since September 22, according to the Dow Jones Market Data.
In week, the 10-year lost 14.2 basis points, while the 30-year followed the same pace, falling by 15.5 basis points, in the biggest weekly decline since June 12, 2020.
Indicators – Statistics
On the dashboard, the industrial Dow Jones lost 0.17% at 34,580 points, while recording an intra-conference low at 34,264.57. The wider S&P 500 fell 0.84% to 4,538.43 points, while intra-conference was even at 4,495.10. The technological Nasdaq slipped 1.92% to 15,085.47 points, while it lost up to 2.7%.
In weekly basis The Dow fell 0.9% in the fourth consecutive week with losses. The S&P 500 lost 1.2%, falling for a second 5-day series, and the Nasdaq slipped 2.6%.
From 30 shares that make up the Dow 15 closed with a positive sign and an equal number with a negative. The gains were led by Walgreens Boots with an increase of 4.28% and Procter & Gamble which gained 1.78%. On the other hand, the biggest losses were recorded by Microsoft (-1.97%), Boeing (-1.92%) and JPMorgan (-1.81%).
Marvell Technology recorded a rally of 17.68%, after the results and prospects of the chip company exceeded the forecasts of Wall Street.
DocuSign shares fell 42% after losing their earnings forecasts, with its chief executive saying the pandemic affected the company in the quarter.
Didi “sank” by 22%, after the Chinese car rental giant announced yesterday that it will be delisted from the New York Stock Exchange, following pressure from the Chinese government.