new York Weekly US jobs data gives investors on Wall Street optimism. The Dow Jones index of standard values closed 1.1 percent higher on Thursday at 33,220 points. The tech-heavy Nasdaq advanced 2.6 percent to 10,478 points. The broad S&P 500 gained 1.7 percent to 3849 points.
Initial US jobless claims rose as sharply as expected at 225k compared to 216k the previous week. “It’s certainly a sign of a slowdown in the labor market,” said Peter Cardillo, chief economist at investment firm Spartan. Investors are hoping that a slowing labor market will prompt the US Federal Reserve and other major central banks to take smaller interest rate hikes.
However, today’s price development is also related to the fact that the market has performed quite poorly in the past few 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 partially bargain hunting,” Cardillo said.
Investors grabbed US government bonds again. In return, yields fell. The ten-year bonds returned 3.8277 percent compared to 3.886 percent the previous day. This supported Nasdaq stocks such as Netflix, Apple and Microsoft, which rose by up to 5.1 percent. According to experts, rising inflation and higher interest rates will devalue the future profits of these high-growth companies.
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The improved sentiment weighed on the US currency, which is seen as a safe haven in times of crisis. The dollar index fell 0.5 percent to 103.93 points.
At the same time, doubts about fuel demand as a result of the wave of infections in China pushed oil prices back into the red. The North Sea variety Brent became cheaper by 1.2 percent to $82.27 per barrel (159 liters). The US variety WTI lost 0.4 percent to $ 78.66 per barrel. “Oil prices are slipping for a second day, erasing part 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. The shares of the US e-car maker were eight percent higher. Rivals Lucid and Rivian were also up more than five percent each. “Don’t get too discouraged by the madness of the stock market,” Musk wrote in an email to workers.
>> Read here: short seller make $15 billion betting against Tesla stock
He firmly believes that Tesla will become the most valuable company in the world in the long term. Investors worried about Tesla’s production in Shanghai. Some also feared that Musk’s tweets and bumpy takeover of Twitter would damage the brand.
“Whether the stock market at Tesla 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 house RoboMarkets.
Look at other individual values:
Southwest Airlines: Southwest remains under surveillance. The airline is trying to recover from the problems that have caused thousands of flight cancellations over the past week. The stock is up 3.6 percent at the close after falling 11 percent over the past two days.
ImmunoGen: ImmunoGen is up more than seven percent in late trading after the biotech announced that chief financial officer Susan Altschuller would not be returning from her furlough. Vice President and Chief Accounting Officer Renee Lentini has been appointed interim Chief Financial Officer.
More: The Fed sets the mood on Wall Street