Wall street has closed on Friday with rises. The main indices of the New York Stock Exchange have passed the terrible employment report that has been known this Friday and both the Dow Jones and the S&P 500 have conquered new all-time highs, the first at 34,811 points and the second at 4,238 points . The Nasdaq has led the increases encouraged by the fall in Treasury yields, however, it is the only one that ends the week with a negative balance, it has fallen by about 1.5% in the last five sessions.
Continuing with the unemployment data, the forecasts pointed to a strong recovery in employment, with close to one million new jobs. However, the figure has been much worse than expected: only 266,000 jobs were created in April and the unemployment rate has risen to 6.1%. The latter figure was expected to drop to 5.8%.
"One thing is clear, the current loose monetary policy is not going anywhere anytime soon"acknowledges the analyst Naeem Aslam, from Avatrade. Indeed, the fear of many investors was that the US would create even more employment than expected, which would cause the Fed to withdraw from its purchase of bonds earlier than expected.
Steve Englander, from Standard Chartered, warned a couple of days ago that un excess of 2 million in the employment report may scare away investors, and anything over a million and a half will create "uncertainty" among market participants.
The figures have had an immediate impact on the yield of the 10-year Treasury bonds, which at this time on Friday fell 2.6% to 1.51%. These falls have encouraged the technology index with strong rises.
THE FED ALERT ON THE STOCK EXCHANGES
At the moment, the market has not taken into account the Federal Reserve (Fed) notice on the high stock market valuations in the US, which poses growing threats to the financial system.
In its semi-annual Financial Stability Report, the central bank said that while the overall system has remained largely stable even through the Covid-19 pandemic, future dangers are increasing, in particular by the vertical rise of bags from the lows of March last year.
"High asset prices partly reflect the continued low level of Treasury yields. However, valuations of some assets are elevated relative to historical norms, even when using measures that account for Treasury yields. In this context, Asset prices can be vulnerable to significant drops should risk appetite drop", the Fed has warned.
The report also repeatedly mentions the hedge fund risk Y other non-bank financial institutions as possible threats to the system.
In other markets, oil West texas falls 0.2% to $ 64.57, while the euro it appreciates 0.1% and changes to $ 1.2078. In addition, the profitability of the 10-year American bond rises slightly to 1.57% and the ounce of gold it rebounded 0.3% to $ 1,821. Finally, the bitcoin it rises slightly to $ 56,335.
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