(CercleFinance.com) – Burdened by a job report likely to reinforce the ‘hawkish’ attitude of the Fed and a warning issued by AMD, the New York Stock Exchange ended a volatile week with a depressed session on Friday.
The Dow Jones thus suffered a fall of 2.1% to 29,297 points, while the Nasdaq Composite fell 3.8% to 10,652 points, underperformances which reduced the respective weekly gains of the two indices to 2% and 0 .7%.
The U.S. economy added 263,000 nonfarm payrolls in September, a number slightly above consensus, and the unemployment rate – expected to be roughly stable – fell 0.2 points to 3.5%, its lowest level since 50 years according to Commerzbank.
‘The tensions on the labor market have therefore hardly subsided from the point of view of the Federal Reserve and further significant rate hikes are to be expected’, warns one at the German bank.
In other news that weighed on the session, AMD announced preliminary revenue and adjusted gross margin significantly lower than its previous expectations for the third quarter, due to weaker than expected PC demand.
This publication caused the title of this semiconductor manufacturer to plunge by 13.9%, dragging in its wake other chip manufacturers such as Intel (-5.4%) or manufacturers of equipment for the sector. such as Applied Materials (-6.3%).
Energy stocks resisted the general trend better, like Chevron (-0.8%) or ExxonMobil (-1%), supported by a WTI crude oil price which rose by 4.5 % to nearly $92.5 a barrel.
‘Market participants continued to digest the OPEC+ production cut’, says Wells Fargo, noting that WTI had its best weekly rally since March, ‘tight supply conditions outweighing headwinds economic’.
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