Stocks rise worldwide after jobless claims data in the US
Applications for unemployment benefits fell last week to 406,000. It’s the lowest number in the United States since the beginning of the pandemic.
In addition, the US Bureau of Economic Analysis left its estimate of first-quarter GDP growth unchanged, which was 1.6%.
This week Wall Street has remained relatively stable as fears of rising inflation dissipated, given the insistence of the Federal Reserve that it will maintain its monetary policy.
The Dow Jones rose by 0.41% after labor data
Wall Street closed in mixed terrain this Thursday, and its main indicator, the Dow Jones, rose by 0.41%. The day was marked by better than expected data on the labor market and sales in the technology sector.
At the close of the New York Stock Exchange session, the Dow Jones added 141.59 points to 34,464.64. At the same time, the selective S&P 500 rose by a slight 0.12% or 4.89 points, to 4,200.88.
The Nasdaq composite index, in which the leading technology companies are listed, was almost flat with a drop of 0.01% or 1.72 points, to 13,736.28.
By sectors, the gains of industrial (1.37%), financial (1.19%), and basic materials (0.74%) companies stood out.
The technology sector lost 0.53%, weighed down by big names like Alphabet (-1.27%), Apple (-1.24%), or Microsoft (-0.87%).
The New York stock market operated optimistically for the economic recovery from the Covid-19 crisis in the US.
The trading volume is lower than usual for the long weekend of Memorial Day. This holiday is celebrated the following Monday and is a reason for the market to close.
Mark Hackett, an analyst at Nationwide Financial, stated that stock markets are quiet as investors continue to anticipate the next step of the Fed. Low volatility and low trading volume frequently occur in the week leading up to a holiday.
In the group of 30 listed on the Dow Jones, the most significant progress was for Boeing (3.87%), followed by Honeywell (3.12%), Walgreens (1.98%), and JPMorgan (1.56%).
Outside of that group, Ford rose for the second day in a row today by 7%, following its heavy investment in electric vehicles announced on Wednesday.
Some favorite stocks on internet forums, which suffered volatility at the beginning of the year, saw notable gains today. AMC soared by 35%, and GameStop raised by almost 5%.
The Nikkei gained almost 2%
The Tokyo Stock Exchange experienced a rise today. Nikkei, its main indicator, surged by 1.97% thanks to better-than-expected employment data published in the US on Friday and the budget of about $6 trillion that President Joe Biden aspires to compile.
In the first section of the session, the Nikkei achieved an advance of 562.4 points, reaching 29,111.41 integers. At the same time, the Topix, a broader index that includes the securities with the highest capitalization, those of the first section, gained 33.91 points or 1.77%, to reach 1,944.93 integers.
Operators in Tokyo welcomed last week’s unemployment benefit claims in the US. It fell to 406,000, the lowest number in the country since the start of the pandemic.
Besides, the US Bureau of Economic Analysis left its estimate of GDP growth for the first quarter unchanged at 1.6%. Also, the Biden Government announced that it aspires to compile a budget of about $6 trillion, a record volume since World War II.
Faced with the prospect of such an increase in public spending in the world’s leading economy, metallurgical and machinery stocks were among the most favored in the first tranche of the session.
Nippon Steel & Sumitomo Metal added 4.01%, and Kawasaki Heavy Industries increased its value by 5.03%.
Seoul gained 0.73%
The Seoul Stock Exchange closed today with a rise in the Kospi, its main indicator, by 0.73%. It resulted from the publication on the eve of positive data on the recovery in the United States.
The South Korean selective gained 23.22 points on Friday to stand at 3,188.73 units. Meanwhile, the Kosdaq technology stock index advanced 0.35%, or 3.38 points, to close at 977.46 units.
The Kospi moved all day in positive after the publication of the data of applications for unemployment benefits of last week in the US.
The Indian stock market started the day with a record increase
The Indian stock market has gained for the second consecutive day on Friday. Sensex is trading up 375 points at 51,490, and Nifty is up 120 points at 15,457. Metal and government banking stocks are the biggest gainers in the market.
In the Sensex, 12 of the 30 stocks experienced a rise. Reliance Industries rallied most in over two months on heavy trading volumes. It is trading with an increase of 6.2%. At the same time, Sun Pharma’s stock is trading down by 3.9% due to the sell-off in the pharmaceutical sector.
As for BSE, formerly Bombay Stock Exchange, 1,441 shares of the 3,222 stocks have been trading with a profit. Meanwhile, 1,609 have dropped.
Experts expect the Stock Market to reach new highs
The Indian market started the day with a record increase. The index opened 83.35 points above yesterday’s closing level at 15,421. It also reached 15,455 points during trading, the highest level ever. Similarly, Sensex also opened with an increase of 266.05 points at 51,381. Earlier on Thursday, the Sensex was up by 97.70 points at 51,115.22, and the Nifty gained 36.40 points to close at 15,337.85.
The rally in the market came as a surprise since the second wave of the pandemic continues to hit the economy. Nifty has surged more than 60% in the past year, outpacing every other primary equity benchmark worldwide.
However, Manish Jain, fund manager at Ambit Asset Management, considers that the rally in quality “Good & Clean stocks” has just started.
Traders have maintained the claim made in the next series if the market continues to boom. They believe the market can be forecast to go to new heights again in the coming weeks. According to experts, the Nifty may remain in the range of 15,600-15,800 this month. It is expected if the number of coronavirus infections decreased in June and July.
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