(CercleFinance.com) – The New York Stock Exchange rose slightly on Friday following the publication of employment figures suggesting that the Federal Reserve could soon slow the pace of its monetary tightening.
As midday approaches, the Dow Jones slows down and only advances 0.6% to 32,193.9 points, while the Nasdaq Composite takes another 0.2% to 10,367.1 points .
The Labor Department announced this morning that the US economy added 261,000 non-farm payrolls in October, a figure well above market expectations.
This better-than-expected indicator – which confirms the solidity of the labor market and therefore the resilience of the US economy – seems likely to reinforce fears of continued monetary tightening.
But the devil is, as so often, in the details and the rise in the jobless rate to 3.7% from 3.5% the previous month suggests some easing in a job market so far. wrought up.
At the same time, the average hourly wage shows an increase of 4.7% over one year, against 5% in September, which somewhat appeases fears of a further acceleration in inflation.
Investors say that the easing of tensions in the labor market could lead the Fed to slow the pace of its monetary tightening, perhaps as early as next month.
‘Today’s figures still point to further rate hikes, but recent indications from the Fed point to lower hikes than the recently decided 75bp hikes,’ the statement said. analyst for a major European bank.
The probability of a rate hike of 50 basis points has also increased to 56.8% against 51.5% yesterday, which today makes it the scenario favored by the markets, ahead of an increase in 75 points (estimated at 43.2%).
The dollar weakened against the euro in the wake of this statistic, a sign that investors are skeptical of further aggressive rate hikes from the Fed.
Conversely, the yield on ten-year Treasury bonds is 4.16%.
On the oil market, the barrel of light Texas crude (WTI) climbed more than 3% to 91.1 dollars against a backdrop of a weaker dollar and speculation about a possible relaxation of the ‘zero Covid’ policy in China.
On the value side, PayPal dropped 5% after lackluster quarterly results, which saw the online payment specialist do better than expected in terms of profit, but less than expected in terms of turnover.
Starbucks for its part climbed 8% after reporting better-than-expected results thanks to ‘record’ sales over the past quarter.
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