Wall Street takes a breather

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 play it safe and cash in. The US standard value index Dow Jones fell on Wednesday by 0.6 percent to 29,872.47 points after breaking the 30,000 mark for the first time on Tuesday. The broader S&P 500 lost 0.2 percent, while the tech-heavy Nasdaq gained 0.5 percent. Because of the Thanksgiving holiday, Wall Street will be closed on Thursday and will only open for a shortened trade on Friday.

Hopes for a corona vaccine and the recently surprisingly robust US economic data have recently driven Wall Street’s most important indices. The S&P 500 faces 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 a record level.

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

“There are some concerns that the labor market is regressing compared to the step forward when the stimulus packages have now expired and appear 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. Immediately 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 worsening pandemic in March, the unemployment rate was a low 3.5 percent.

S&P 500 is expected to be nine percent up by the end of 2021

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