2023-06-02 21:22:30
(Photo: Getty Images)
MARKET REVIEW. The New York Stock Exchange ended sharply higher on Friday, posting multi-month highs to close for the Nasdaq and S&P 500, buoyed by strong jobs numbers that fuel hopes for a soft landing in the American economy.
The Toronto Stock Exchange jumped more than 350 points on Friday, fueled by gains in the energy, industrials, financials and metals sectors, while the major US indices also rose.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX gained 352.38 points (+1.79%) to 20,024.63 points.
In New York, the S&P 500 rose 61.35 points (+1.45%) to 4,282.37 points.
The Nasdaq took 139.78 points (+1.07%) to 13,240.77 points.
The DOW gained 701.19 points (+2.12%) to 33,762.76 points.
The loon increased by US$0.0010 (+0.1346%) to US$0.7442
The oil rose US$1.82 (+2.60%) to US$71.92
L’or fell by US$30.90 (-1.55%) to US$1964.60
The bitcoin increased by US$286.46 (+1.06%) to US$27,193.29.
The context
In a sign of a turning point for Wall Street, the VIX index, which measures investor nervousness and market volatility, fell to its lowest level in nearly two years.
“It was clearly a risk-taking day,” commented Angelo Kourkafas of Edward Jones.
“The two good news were the extinction of the risk linked to the debt”, with the vote, the day before, of a text in the Senate, “and the almost ideal report on employment”, continued the analyst.
The US economy added 339,000 jobs in May, nearly double the figure projected by economists (190,000).
The figure was so high that it might have worried traders regarding a possible continuation of monetary tightening by the US central bank (Fed) to curb inflation.
But the observation was nuanced by the greater than expected rise in the unemployment rate, to 3.7% once morest 3.4% in April, as well as by the deceleration in the pace of increase in the average wage, to 0.3% on one month once morest 0.4% previously.
Overall, “we believe in a soft landing” for the US economy, according to Angelo Kourkafas.
“These contrasting data will give the Fed arguments to leave its rates unchanged at its next meeting” on June 13 and 14, argued Nancy Vanden Houten of Oxford Economics.
Traders expect a further hike in July, which would be the last in this cycle.
The surge in equities came at the expense of bonds, which tumbled.
In addition to risk appetite, the movement is due to the prospect of massive bond issues by the US Treasury, which will have to rebuild its reserves following being prevented for weeks by the debt crisis.
The yield on 2-year US government bonds stood at 4.49%, once morest 4.34% the day before closing.
On the stock market, for once, the Dow Jones and traditional stocks have done better than the Nasdaq, which had driven the entire market in recent months thanks to the tech giants.
“There is a semblance of rotation going on,” observed Angelo Kourkafas, stimulated, in part, by the day’s macroeconomic data, which suggests that “consumers still have ammunition” thanks to the good performance of the market. ‘job.
Au Dow Jones, Caterpillar (CAT, +8.40% to US$226.63) and Boeing (BA, +2.58% to US$213.32) particularly shone.
Elsewhere, Amazon (AMZN, +1.21% to US$124.25) took advantage of information from the Bloomberg agency according to which the group plans to launch a mobile phone offer for its Prime subscribers, at low cost, or even free of charge. Asked by AFP, Amazon denied.
Telephone operators have suffered from this development, whether AT&T (T, -3,80% à 15,21$ US), T-Mobile (TMUS, -5.56% to US$131.19) or Verizon (VZ, -3.19% to US$34.58).
The Canadian sports equipment supplier Lululemon Athletica (LULU, +11.30% to US$365.44), known for its high-end yoga pants, sprinted following posting better-than-expected results on Thursday following trading and raising its annual forecast.
The conglomerate 3M soared (MMM, +8.75% to US$102.53) following Bloomberg reported an out-of-court settlement to avoid a lawsuit from hundreds of local authorities seeking damages from it over the contamination of their water with perfluoroalkyl and polyfluoroalkyl, also called PFAS, nicknamed “eternal” pollutants.
Before the stock market, petrochemical groups DuPont de Nemours (DD, +7.31% to US$72.37) and Chemours (CC, +24.09% to US$33.64) had announced an agreement in the same case.
1685760006
#Stock #market #Wall #Street #ends #higher #multimonth #highs #Nasdaq
