Börse Express – New York equities: Strong US labor market slows share prices

NEW YORK (dpa-AFX) – A surprisingly robust US labor market, with wages and salaries soaring, threatens the weekly balance of the main Dow Jones Industrial index on Friday mess up. According to observers, the US Federal Reserve may feel compelled to continue drastically raising interest rates to calm the job market. Prior to this scenario, the main Dow Jones Industrial Index fell 0.31% to 34,287 points, indicating a small loss on a weekly basis.

Hourly wages in the U.S. increased by two times month-on-month in November than analysts expected. The number of new jobs was also higher than market expectations. The labor market has so far been unimpressed by interest rate hikes, the Commerzbank economists wrote. The Fed will therefore continue to tighten interest rates “to force a cooling in the labor market”. The Fed should only stop raising interest rates when this cooling is clearly evident.

S&P 500 at market level it lost 0.55% to 4054 points. The high-tech Nasdaq 100 it lost 1.04% to 11,917 points. Contrary to the Dow, the index is still slightly up on a weekly basis.

By mid-week, the Dow had risen to its highest level since late April. Fed Chairman Jerome Powell sparked euphoria on stock markets with a statement that December key rates may not have risen as much as in previous months. “I still think the Fed is likely to hike rates more slowly since its December meeting,” QC Partners portfolio manager Thomas Altmann predicted. Rate hikes of this magnitude “could be with us longer than previously thought.”

Moving company news on prices was scarce ahead of the weekend. According to a Wall Street Journal report, United Airlines is standing shortly before an order for dozens of 787 Dreamliners from Boeing . Boeing shares then moved to the top of the Dow with a premium of more than three percent.

Marvell Technology shares it fell by 3.8%. The semiconductor maker presented disappointing sales and earnings data for the recent quarter. The outlook was also lower than expected.

The shares of food supplier Doordash fell 2.4% after bank RBC removed a buy rating on the stock. Their analyst Brad Erickson pointed out that competitor Uber best in NYC’s premier market, Manhattan.

The cards of the cloud specialist Zscaler it dropped more than eleven percent. A disappointing business outlook has had a negative impact here. In contrast, automation software developer Uipath outperformed with the interim report, which sent the stock skyrocketing nearly twelve percent./bek/jha/

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0260 2022-12-02/19:58

Copyright dpa-AFX business news GmbH. All rights reserved. Redistribution, republication or permanent archiving without the prior express consent of dpa-AFX is not permitted.