New York Surprisingly weak labor market data are taking the wind out of Wall Street’s sails. The US standard value index Dow Jones rose 0.2 percent on Wednesday at 29,883.79 points. The tech-heavy Nasdaq and the broad S&P 500 also barely moved. The latter posted the highest closing price in its history with 3669.01 points.
Investors were encouraged by statements about the eagerly awaited additional economic stimulus from the government. House majority leader Steny Hoyer said an agreement could be reached “in the next few days”. Weak economic data increased the pressure on politicians to act, said stockbrokers.
The private employment agency ADP According to US firms, only 307,000 new jobs were created in November, about a quarter fewer than expected. The basic mood remains positive, said Derek Halpenny, chief analyst for Europe at the bank Mitsubishi UFJ. The current profit-taking is understandable against the background of the rally of the past few weeks.
The price setbacks would remain moderate, predicted economist Simona Gambarini from the research house Capital Economics. “I don’t think this is the beginning of a correction as there is bound to be more positive news about vaccines.” Previously, the UK was the first country in the world to have BioNTech’s and coronavirus vaccine Pfizer authorized.
The market has been fueled in the past few weeks by optimism that Covid-19 vaccines will help accelerate the economic recovery. That has skyrocketed in stocks that are responsive to economic growth, including energy and banks.
The Dow had risen above 30,000 points for the first time a few days ago. According to market observer Edward Moya from broker Oanda, it is becoming more and more difficult to get enthusiastic about stocks at these heights – especially since it remains unclear to what extent a new US economic stimulus package this year is still realistic.
Read on now
Get access to this and every other article in
Web and in our app for 4 weeks free of charge.