Wall Street tumbles on fears of Fed policy tightening (Getty)
US stocks and bonds ended their first week in the last quarter of the year on painful declines, following the good jobs news was a disaster for them, as it paved the way for the Federal Reserve for monetary policy. tougher.
And yet Great start to the weekthe momentum in the markets slowed, before the Nasdaq index lost 3.8% of its value on Friday, and the S&P 500 index fell by 2.8%, while the Dow Jones Industrial Average only lost 2.11%, following the newly released data in Washington showed an addition of 263 thousand New job, to decline rate The unemployment to 3.5%, once more approaching its lowest level in more than half a century.
Despite the heavy losses in the last days of the week, the major stock indices succeeded in ending it higher, albeit much less than the hopes that were held following the gains of the first two days of it. The Dow Jones Industrial Average rose 2% in the week, the S&P 500 added 1.5%, while the Nasdaq only added 0.8% to its value, during the same period.
While the labor market data was a cool and peaceful response to the Fed’s intentions to keep interest rates at their high levels for some time, the US 2-year Treasury yield rose to exceed 4.30%, while the 10-year bond yield approached the 3.90% level once more.
Oil markets maintained their recovery following OPEC+ decision By reducing production by two million barrels, starting next month, as the price of Brent crude rose by 3.91%, to record $98.11, while the price of US West Texas crude jumped by 4.91%, to $92.79 a barrel.
Meanwhile, following the jobs report was published, spot gold prices fell 0.6%, to $1,700 an ounce.
“The market is looking at the better-than-expected jobs report as further impetus for the Federal Reserve to raise rates by another 75 basis points at the early November meeting,” Archyde.com news agency said. The interest hike is one of the most important factors frustrating the price of the precious metal, as the interest represents the opportunity cost for them.
European stocks were not spared the consequences of the jobs report, as the pan-European Stoxx 600 index fell 1.2%, recording the third consecutive session of losses.
