(CercleFinance.com) – Wall Street made a clear rebound on Friday morning following its losses the day before, the announcement of job creation above expectations last month having reinforced the current good health of the world’s largest economy.
At the end of the morning, the Dow Jones gained almost 0.6% to 38,814.2 points, while the Nasdaq Composite gained 1.1% to 16,230.6 points.
US markets started on a more cautious note in reaction to strong employment figures, which certainly bode well for growth, but which also fuel fears of a delay in Fed rate cuts .
The Labor Department actually recorded 303,000 non-agricultural job creations in March, compared to 270,000 last month, while economists only anticipated around 200,000.
The speakers consider that beyond the risk linked to the evolution of the monetary policy of the Federal Reserve, the good performance of the economy in the United States constitutes a favorable element for equities.
This better-than-expected report is also seen as a reason for the central bank to maintain its patient, or ‘data-dependent’, approach.
‘It doesn’t really change the situation and gives Jerome Powell time to organize the sequence of rate cuts,’ says Bastien Drut, head of strategy and economic studies at CPR AM.
The good employment indicator, on the other hand, weighs on Treasury bonds, bringing the yield on 10-year securities to its highest level since the end of November, at 4.37%, after the test of the crucial resistance of the 4, 40%.
The dollar strengthens significantly following the employment statistics, causing the euro to fall to around 1.0830.
Gold extends its upward movement (+1%) beyond $2,320, while Saxo Bank analysts say they are considering a new potential progression towards the threshold of $2,500 for the precious metal.
Over the week as a whole, the Dow Jones has so far lost 2%, while the Nasdaq has fallen by more than 1% after having already suffered losses last week.
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