Monday , January 24 2022

Wall Street takes a blow



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The New York Stock Exchange on Wall Street

The New York Stock Exchange is located on the famous street.

(Photo: dpa)

Düsseldorf Before the long weekend in the US, some investors are playing it safe and money. The U.S. default value index Dow Jones fell 0.6 percent Wednesday to 29,872.47 points after hitting its 30,000 mark for the first time on Tuesday. The broad S&P 500 lost 0.2 percent, while the tech-heavy Nasdaq rose 0.5 percent. Due to the Thanksgiving holiday, Wall Street will be closed on Thursday and the doors will only open on Friday for a shortened trade.

Hope for a corona vaccine and the recently surprisingly robust U.S. economic data have recently driven Wall Street’s major indices. The S&P 500 stands for the best November ever, with the Dow Jones breaking the 30,000 mark for the first time on Tuesday. The US small cap index Russell 2000 also closed at record levels.

On Wednesday, however, the disappointing job data delayed the rally again. Because the situation on the labor market is aggravated amid the escalating corona pandemic. In the week to November 21, there were 778,000 new applications for unemployment benefits, as announced by the Ministry of Labor. Analysts had expected an average of 730,000 requests.

“There are some concerns that the labor market is declining compared to the step forward when the stimulus packages have now expired and seem to be missing for now,” said Paul Nolte, portfolio manager at Kingsview Investment Management.

The data provide a real-time impression of the labor market situation in the world’s largest economy. Right before the corona pandemic, the number of new applications was mostly around 200,000 per week. The unemployment rate fell to 6.9 percent in October. Before the worst pandemic in March, unemployment was down 3.5 percent.

The S&P 500 is expected to rise nine percent by the end of 2021

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