(New York) The New York Stock Exchange ended sharply higher on Friday, posting multi-month closing highs for the NASDAQ and S.
The Dow Jones rose 2.12%, the NASDAQ index rose 1.07% and the broader S
The NASDAQ ended at its highest closing level in 13 months, while the S
In a sign of a turning point for Wall Street, the VIX index, which measures investor nervousness and market volatility, has fallen to its lowest level in nearly two years.
“It was clearly a risk-taking day,” commented Angelo Kourkafas of Edward Jones.
“The two good news were the extinction of debt risk”, with the vote, the day before, of a text in the Senate, “and the almost ideal report on employment”, continued the analyst.
The U.S. economy added 339,000 jobs in May, nearly double the figure projected by economists (190,000).
The figure was so high that it could have worried traders about a possible continuation of monetary tightening by the US central bank (Fed) to curb inflation.
But the observation was nuanced by the greater than expected rise in the unemployment rate, to 3.7% against 3.4% in April, as well as by the deceleration in the rate of increase in the average wage, to 0.3% over one month versus 0.4% previously.
Overall, “we believe in a soft landing” for the US economy, according to Angelo Kourkafas.
“These contrasting data will give the Fed a reason to leave rates unchanged at its next meeting,” on June 13-14, argued Nancy Vanden Houten of Oxford Economics.
Traders expect a further hike in July, which would be the last in this cycle.
The surge in equities came at the expense of bonds, which tumbled.
In addition to risk appetite, the movement is due to the prospect of massive bond issues by the US Treasury, which will have to rebuild its reserves after being prevented for weeks by the debt crisis.
The yield on 2-year US government bonds was 4.49%, compared to 4.34% the day before closing.
On the stock exchange, for once, the Dow Jones and traditional stocks outperformed the NASDAQ, which had driven the entire market in recent months thanks to the technology giants.
“There’s a semblance of rotation going on,” observed Angelo Kourkafas, spurred, in part, by the day’s macro data, which suggests that “consumers still have ammunition” thanks to the strength of the oil market. ‘job.
In the Dow Jones, Caterpillar (8.40%) and Boeing (2.58%) particularly shone.
Elsewhere, Amazon (1.21%) took advantage of information from the Bloomberg agency that the group plans to launch a mobile phone offer for its Prime subscribers, at low cost, or even free. Asked by AFP, Amazon denied.
Telephone operators have suffered from this development, whether AT
The Canadian sports equipment manufacturer Lululemon Athletica (11.30%), known for its high-end yoga pants, sprinted after publishing, Thursday after the stock market, results that exceeded expectations and raised its annual forecasts.
The 3m conglomerate soared (8.75%) after Bloomberg reported an amicable agreement to avoid a lawsuit brought by hundreds of local authorities who are claiming damages from it for the contamination of their water in the perfluoroalkyl and polyfluoroalkyl, also called PFAS, nicknamed “eternal” pollutants.
Before the stock market, the petrochemical groups DuPont de Nemours (7.31%) and Chemours (24.09%) had announced an agreement in the same file.
The Toronto Stock Exchange jumped more than 350 points on Friday, fueled by gains in the energy, industrials, financials and metals sectors.
The composite index S
In the currency market, the Canadian dollar traded at an average rate of 74.43 cents US, up from 74.17 cents US on Thursday.
