During the week, the stock prices reached record levels, thanks to the conviction of investors that the American FED will soon reduce interest rates, but the end of the week fell due to the weakness of the economy.
On Wall Street, the Dow Jones passed 0.3 percent last week, to 45,400 points, while the S & P 500 strengthened 0.3 percent, to the 6,481 point, and NASDAQ 1.1 percent, to 21,700 points. On Thursday, the S & P 500 has reached a new highest level in history thanks to the growth prices of technological giants, such as Alphabet, Apple, Amazon, Broadcom, Meta Platforms …
The market support provides a belief that the US Central Bank in the session in mid-September reduces interest rates for 0.25 percentage points. The leaders of the Feda for the last few days say that due to the weakness of the labor market, this is possible. Therefore, the investor’s focus on the US employment was in the US in August on Friday.
This report strengthened the expectations that the Fed this month would reduce interest rates, but also caused concern about the weakness of the labor market. In August, the number of employees in the United States increased by only 22,000, while analysts expected 75,000 on average. At the same time, the unemployment rate rose to 4.3 percent. Bad data caused fears from a significant slowdown in the growth of the economy, so the stock market indices fell and so lost part of the winnings from the beginning of the week.
And on most European stock market prices have fallen last week, which is mostly due to the political crisis in France, where the minority government tries to push great budget savings.
However, the London FTSE index strengthened 0.2 percent, at 9,208 points, but Frankfurt Dax slipped 1.3 percent, to 23,596 points, and the Paris CAC 0.4 percent, at 7,674 points.
