Wall Street achieved another positive week, albeit with slight gains, while US stocks started the fourth quarter in the green.
Over the course of the week, the S&P 500 made slight gains, while the Dow was down 0.12%, and the Nasdaq was up 0.65%.
Stocks rose slightly, Friday, as investors assessed a new quarter of trading and a worrisome bond market slump index.
The stock gains came on the first trading day of April and the second quarter. Wall Street rebounded from its first negative quarter in two years, but there were positive signs for investors on Friday.
Jobs Report
The Standard & Poor’s 500 index rose slightly at the close, Friday, at the beginning of the second quarter, following the monthly US jobs report indicated the strength of the labor market, and is likely to keep the Federal Reserve (the US central bank) on course to continue its stance of tightening policy.
The US Department of Labor report showed that the pace of employment accelerated, while wages continued to rise, although the rise was not sufficient to keep pace with inflation.
US employers added 431,000 jobs in March, less than expectations of 490,000, but job growth remains strong. The unemployment rate fell to 3.6 percent, the lowest level in two years, while average hourly earnings rose 5.6 percent on an annual basis.
Standard & Poor’s ended trading up 15.32 points, or 0.34 percent, to 4,544.79 points.
The Nasdaq Composite Index rose 42.93 points, or 0.27 percent, to 14,263.45 points.
The Dow Jones Industrial Average rose 139.10 points, or 0.40 percent, to 34,817.45 points.
Chinese stocks on Wall Street
In addition, US-listed Chinese stocks jumped on Friday following a report that China is considering sharing corporate audits with foreign regulators.
Investors seem to be largely getting rid of the slack signal from the bond market that was unleashed following the closing bell on Thursday and once more on Friday morning. The 2-year and 10-year Treasury yield reversal for the first time since 2019.
For some investors, this is a sign that the economy is heading into a potential recession, although the inverted yield curve does not predict exactly when it will occur, and history shows that it might take more than a year or more.
European stocks
European shares rose on Friday as a rally in commodity-related stocks and banks helped overcome concerns regarding economic growth and inflation, with Europe remaining alert in anticipation of disruption to gas imports from Russia.
For now, the Russian threat to cut gas supplies to Europe has been averted unless buyers pay in rubles, with Moscow saying it will not halt supplies until new payments are due later in April.
Fears of the fallout from the war, exacerbated by a possible central bank tightening of policy to control rising inflation, led to the Stoxx 600 index of all European shares, its first quarterly loss in two years last quarter.
Banking shares rose 1.2 percent on Friday, with Spain’s Santander Bank rising 2.6 percent following it reiterated its profit target for 2022.
“Markets have been range-bound over the past few weeks and got a boost today following (Russian President Vladimir) Putin did not follow through on his threats to use the ruble, ending a week of investor anxiety that Europe might It is witnessing a decrease in gas flows.”
Shares of mining and oil companies led the gains, Friday, and jumped by 18 percent and 14 percent, respectively, in the last quarter, amid rising commodity prices due to the Ukraine war.
Technology stocks were among the worst performers in the last quarter due to inflation concerns, as they fell by 17 percent, and lost 0.3 percent, on Friday.
Among the individual stocks, the French food services group Sodexo fell by 9.5 percent, due to the downgrading of its full-year self-revenue growth forecast.
(agencies)