(New York) The New York Stock Exchange was on a downward trend on Friday after strong job creation in May in the United States, which caused bond rates to jump and set back the idea of an upcoming reduction in bond rates. the Fed.
After a decline at the opening, the Dow Jones index managed to gain 0.05%, but the technology-dominated NASDAQ lost 0.21% and the S
The American economy created many more jobs than expected in May with 272,000 hires compared to 165,000 the month before and 190,000 expected.
While these numbers are in themselves “good news for workers looking for jobs,” they are also bad news for markets because it “helps push back the date of the Federal Reserve’s next rate cut,” he said. said Robert Frick of Navy Federal Credit Union.
Bond yields immediately jumped after the release, rising to 4.41% from 4.28% the day before for ten-year bonds.
This increase was followed by a surge in the dollar which gained 0.60% against the euro to 1.0825 dollars per euro, around 9:40 a.m. (Eastern time).
“These jobs numbers eliminate any chance the Fed will cut interest rates in July,” said Ian Shepherdson of Pantheon Macroeconomics.
“However our baseline assumption remains that a much weaker set of numbers is ahead, which will allow monetary policy easing in September,” he added in a note.
Investors were also cooled by the 0.4% increase in hourly wages in May, which rose year-on-year to 4.1% from 3.9%. Wage growth can fuel inflation.
The unemployment rate, measured by a separate survey, rose to 4% instead of 3.9%. The high number of workers holding two or even three jobs can partly explain the distortion between the trend in hiring and that of the jobless rate which is also increasing.
On the market, the flagship Nvidia stock lost almost 2% while it will be divided by ten after the close.
The artificial intelligence (AI) chip maker’s market capitalization hit $3 trillion this week, standing shoulder to shoulder with Apple as the second-largest player on Wall Street.
After a spectacular surge of 47% on Thursday, the highly speculative action of video game stores GameStop lost 5.84%.
Some investors are watching for the streaming appearance of stock marketer Keith Gill called “Roaring Kitty”, at the origin of the “meme stocks” movement – these titles carried by exchanges on social networks.
“Roaring Kitty” has promised to launch its channel on YouTube on Friday.
Shares of electronic signature company Docusign fell almost 8% after it announced weaker-than-expected guidance for the second quarter. Still, its first-quarter sales exceeded expectations at $709 million.
Several medium-sized banks and financial institutions, which have a high exposure to commercial real estate loans, took a nosedive, like First Financial Bancorp (-1.11%), Fulton Financial (-1.22%) and Old National Bancorp (-1.46%).
The ratings of these establishments could be lowered, warned the Moody’s rating agency which examines the risks linked to commercial real estate.
The travel industry appeared to resent the prospect of rates remaining high for longer, weighing on costs and slowing demand.
Airlines United (-0.71%), JetBlue (-1.28%), Southwest (-1.15%) were in the red as were cruise lines like Norwegian (-1.62%).
Of the eleven sectors of the S