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An hour before the start of trading, the American arrived the labor market report, often referred to as “the most important number of the month”. It showed that 210,000 new jobs were created in the United States in November, while 550,000 new jobs were expected in advance.
The unemployment rate, on the other hand, fell more than expected, to 4.2 per cent at the end of November.
The three key indices on Wall Street rose from the start on Friday, but after only 20 minutes of trading, it turned abruptly and some indices fell sharply:
- The technology index Nasdaq ended the day down 1.92 percent.
- The broad S&P 500 index ended the day down 0.85 percent.
- The Dow Jones industrial average ended the day down 0.17 percent.
The Vix index, often referred to as the fear index, rose above eight percent on Friday and was traded at levels around 30 points at closing time. The index has risen sharply in the last week after increased fears of new virus variants.
The turbulence in the market also spread to the fixed income market. The interest rate on US government debt with a ten-year maturity, often referred to as “the world’s most important interest rate”, also fell markedly by more than five per cent as investors sought “safe havens”.
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At the closing time, the interest rate was traded at 1.37 per cent.
Eleventh straight month of job growth
Although labor market figures disappointed on Friday, November was the eleventh consecutive month of strong employment growth in the United States. In just one year, more than six million “new” jobs have been created in the world’s largest economy.
However, the number pales in comparison with the fall in April 2020, when employment fell by more than 20 million jobs in what was history’s worst job number.
According to senior economist at DNB Markets Knut Magnussen, US employment growth has been strong throughout the autumn as a result of reopening effects.
– Most jobs have returned to catering and accommodation, but it is still the case that we are not back where we were before the pandemic. Even more jobs are needed in the future, he says.
Musk with bestseller
Earlier this Friday, DN wrote that Tesla CEO Elon Musk continues to sell Tesla shares. On Thursday, he sold another item – this time for over one billion dollars, equivalent to over 9.2 billion kroner.
In total, he has sold Tesla shares for NOK 90 billion.
Tesla shares fall sharply on the news of the big sale, and are down over six percent on Wall Street on Friday. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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