Sherif Adel (Washington)
US stocks ended the week’s trading on a strong note, as its main indices were in the green zone at the weekly level for the sixth week in a row, while the S&P 500 index recorded its highest levels this year.
By the end of trading on Friday, the Dow Jones index achieved an increase of 0.38%, adding 160 points, and the S&P 500 index rose by 0.41%, while the rise in the Nasdaq index was 0.45%.
Friday’s gains came after the release of the jobs report for November, and the results of the University of Michigan consumer opinion poll, which indicated that the US economy continued to enjoy its flexibility, and US inflation slowed, which fueled hopes for the realization of what is known as a soft landing scenario.
The S&P 500 index recorded its highest close during the year last week, but it did not exceed the highest level recorded during daily trading for the year 2023, which it recorded in July, until Friday, when it exceeded the level of 4609 in the transactions of the second half of the day. The most comprehensive index of US stocks has so far risen by 20% since the beginning of the year, and is currently at its highest level since March 2022.
Michael Aron, chief investment strategist at State Street, said: “The jobs report reaffirmed that the economy is not on the brink of recession, while lower inflation expectations and a rebound in consumer sentiment support the trend towards a soft landing.”
He added: “As long as the outcome of a soft landing remains close, the preference for stocks and risky assets remains desirable and positive,” noting that lower inflation, and an improved balance of supply and demand for labor, without a significant rise in unemployment, are all positive things for morale.
The non-farm payrolls report for November showed an unexpected decline in the unemployment rate, reaching 3.7% from 3.9% in the previous month, despite previous expectations that it would remain unchanged. The economy added 199,000 jobs, slightly more than previous estimates of 190,000 jobs. The world’s largest economy added 150,000 jobs in October.
Jobs data released on Friday initially raised fears that the US economy would continue to heat up, indicating that the decline in US inflation may be slower than enough for the Federal Reserve to begin ending the current US interest rate hike cycle.
Most traders expect the Federal Reserve to begin lowering interest rates early in March, while there is a near consensus that the bank will move towards stabilizing interest rates at the next meeting, scheduled to be held over the course of December 12-13.
#stocks #rose #sixth #week #row