Meteorologia

  • 22 OCTOBER 2024
Tempo
17º
MIN 16º MÁX 24º

Wall Street ends week higher after labor market calms

The New York Stock Exchange closed today with gains, with investors relieved by the prospects of a slowdown in the job market and Apple results that were less bad than feared.

Wall Street ends week higher after labor market calms
Notícias ao Minuto

22:51 - 03/05/24 por Lusa

Economia bolsa

The final results of the session indicate that the selective index Dow Jones Industrial Average rose 1.18%, the technological Nasdaq advanced and the broad S&P500 gained 1.26%.

Investors were eagerly awaiting the labor market report. When it was released, they learned that 175,000 jobs were created in April, significantly less than the 240,000 economists had expected.

The document also showed that the average salary increased by 0.2% in monthly terms, also below expectations, which pointed to 0.3%. In annual terms, the increase was 3.9%, the weakest pace since June 2021.

For Patrick O'Hare of Briefing.com, this "neither hot nor cold" report had everything to please. "The numbers are good enough to show that the economy is still growing," but also moderate enough "to comfort the Fed [Federal Reserve (Fed), the US central bank] chairman in the idea that the next move in the [reference interest] rate will not be up".

The bond market also welcomed the news, and the yield on two-year federal bonds fell to 4.70%, a new development in about a month.

The positive effect of the report was combined with the results of Apple, which closed up 5.98%, released on Thursday. The numbers for this technology company's quarterly performance showed a decline, but they came out above analysts' forecasts. "It was less bad than expected," commented Patrick O'Hare.

The Cupertino, California-based group managed to improve its profitability, thanks to services (App Store, Apple Music, iCloud or Apple TV+), whose margins are very significant.

In addition, the apple company announced a new share buyback plan of up to $110 billion, the largest ever launched on Wall Street.

Apple's good session was also shared by other technology companies, such as Nvidia (+3.46%), Microsoft (+2.22%) and Meta (+2.33%).

However, investors did not see in the last two solid weekend sessions the promise of a strong start on Wall Street.

"I think we're going to be in the middle ground," speculated Patrick O'Hare, who predicted that the indices will move according to the indicators. "It's not heaven, but it's not hell either".

Read Also: Lisbon Stock Exchange falls 0.25% in line with declines in Madrid and Milan (Portuguese version)

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