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1.5% falls on Wall Street after unemployment data much worse than expected

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Wall street has dropped an average of 1.5% (Dow Jones: -1.69%; S&P 500: -1.51%; Nasdaq: -1.53%) after the unemployment data in USA. Unemployment in the country has risen to 4.4% in March (2017 highs) from 3.5% in February, six tenths more than expected. We must remember that the unemployment rate was until last month at the lowest in the last 50 years.

The American economy has destroyed a total of 701,000 jobs in the third month of the year, well above the consensus estimate, which anticipated the destruction of 100,000 jobs.

The economic slowdown caused by the Covid-19 It has caused a sudden recession, both in the US and worldwide, the magnitude of which will depend on the evolution of the pandemic.

At the moment, they have been accounted 266,000 cases in the United States and 6,451 deaths , according to data from Johns Hopkins University; and the country is on its way to being the most affected in the world.

GREAT ECONOMIC SHOK

James McCann, economist at Aberdeen Standard Investments, states that "these data are only a sample of everything that is to come. The figures only cover the beginning of the period of confinement, so we know that there are many more unemployed people than can be seen in these figures. "

"Hopefully, these data will stimulate Congress in preparing the next fiscal stimulus package," added this expert. "Losing jobs on this scale is almost like opening a huge trap door under the economy. No one knows how deep the hole is, but there is no doubt that these numbers point to an economic shock like we've never seen before", Add.

Furthermore, the ISM services March is down to 52.5 from 57.3, but is above the expected drop to 44. However, experts from Pantheon Macroeconomics They affirm that "the data for April will be much worse and that the service sector will not make a floor until May or June."

Furthermore, the International Monetary Fund (IMF) It has worsened its forecasts regarding the world economy, considering that already in a "much worse" recession than 2008, as indicated this Thursday by the managing director of the institution, Kristalina Georgieva, in a joint press conference by electronic means with the World Health Organization (WHO).

Within the business front, Tesla It is up 5.6% after closing the best first quarter of its entire history in terms of sales.

OTHER MARKETS AND ANALYSIS OF THE S&P 500

In the raw materials market, the Petroleum has continued to be the main protagonist after closing the most bullish session in its history on Thursday (in the case of West texas, which rose 24%), after anticipating Donald trump a large cut in production by the OPEC and Russia. This Friday, West Texas is up 13% to $ 28.68, in the hope that this cut will be finalized in the coming days, and has closed the most bullish week in its history.

For his part, the euro depreciates 0.4% and changes to $ 1.0810 and the profitability of 10-year American bond falls to 0.60%. For his part, the VIX volatility index falls 7% to 47 points, after setting a new record high at 85.47 points a few sessions ago.

And by technical analysis, the S&P 500 lost in mid-March the 200-session weekly simple moving average and has subsequently rebounded to that level. "We have the world's leading index at potential resistance levels: 2,645-2,650 points," he explains. José María Rodríguez, analyst at Bolsamanía.

"The danger at the moment is that the rebound is part of what is a 'pull back' to the new resistance zone (formerly support) from there take a run again downwards with a first target of falling in annual minima (2,191); and be very careful with drilling them because then we would see a new bearish lash, "adds this expert. The index has closed at 2,488 points.

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