The New York Stock Exchange closed sharply lower on Friday, weighed down by better-than-expected US employment figures, which could delay the rate cut schedule of the US Central Bank (Fed).
The Dow Jones fell 1.63%, the Nasdaq index fell 1.63% and the broader S&P 500 index fell 1.54%.
Just ten days before Donald Trump’s return to the White House, investors on Friday digested job creation, which accelerated again in the United States in December, a new sign of the solidity of the American economy
During the last month of 2024, 256,000 additional jobs were created, more than in November (212,000 created).
The November figure has certainly been revised downwards compared to the initial estimate (227,000 jobs), but it remains significantly higher than the October data.
The unemployment rate fell to 4.1% (-0.1 point) in December, according to data published Friday by the Labor Department.
“Investors saw this as a further sign that the Fed will slow down interest rate cuts in 2025,” Sam Stovall of CFRA commented to AFP.
The Fed monitors employment figures closely, because its missions are to ensure both price stability and full employment. As long as employment remains solid, it can continue to focus on the fight against inflation, which has still not returned to the hoped-for level of 2%, its long-term objective.
In this context, bond rates increased further on Friday. During the day, the yield on ten-year US government bonds reached its highest since October 2023 at 4.80% before falling to 4.76% around 9:30 p.m. GMT. The day before, at the close, it stood at 4.69%.
On the 30-year maturity, the 5% threshold was exceeded around 1:45 p.m. GMT, before falling back to 4.95%.
On the stock market, most sectors finished at half mast.
The energy sector, however, ended in the green, supported by “the additional sanctions that the United States will impose on Russia in the energy sector,” assures Sam Stovall.
The American and British governments announced Friday new coordinated sanctions against the Russian energy sector, against Gazprom Neft and Surgutneftegaz, in order to undermine “the Kremlin’s largest source of financing” for the war effort in Ukraine.
London also sanctioned these two companies, “which between them produce more than a million barrels of oil per day, or a value of around 23 billion dollars (22.5 billion euros) per year at current prices “.
The insurance sector has plummeted – like Allstate (-5.64%) or Chubb (-3.35%) – while the fires are devastating Pacific Palisades and Malibu, two upscale areas of Los Angeles. , will be the most expensive ever to occur in California, experts estimate.
Investors welcomed the announcement of the acquisition of the American Constellation Energy (+25.16%) by its compatriot the energy company Calpine) to create the largest supplier of renewable energy in the United States while the development of artificial intelligence leads to immense electricity needs.
Another value in the green, the department store brand Kohl’s was sought after (+1.41%) after announcing Friday in a press release that it would close 27 “underperforming” establishments by the month of April.
“These measures are part of the company’s ongoing efforts to increase its efficiency and support the prosperity and future of its activities,” said the group, which has more than 1,100 stores in the United States.
The pharmacy giant Walgreens Boots Alliance was propelled (+27.55%) after publishing results above analysts’ expectations for the first quarter of its staggered financial year, ending November 30.
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