Wall Street ends sharply higher in spite of a bleak employment report

Wall Street termine en nette hausse malgré un sombre rapport sur l’emploi

The New York stock Exchange ended sharply higher Friday, despite a devastating report on u.s. employment in April, investors betting on the fact that the worst of the crisis is past.

Its index feature, the Dow Jones Industrial Average, gained 1.91 to 24.331,32 points and the Nasdaq, in high coloring technology, has risen from 1.58% to 9.121,32 points.

The expanded index S&P 500, which represents 500 largest companies of Wall Street, took 1.69% to 2.929,80 points.

On the week, the Dow Jones industrial average climbed 2.6%, the Nasdaq 6%, and the S&P 500 3.5%.

The figures of the day, highly anticipated, have, however, reflected a dark situation, the pandemic has led to the destruction of 20.5 million jobs in April, the United States, a record high level in so little time.

It is “more than twice the number of job losses cashed during the financial crisis” of 2007-2009, are the analysts at Oxford Economics. “There have been more jobs lost over the last two months than were created during the last decade,” they add.

The unemployment rate, which was 3.5% in February, jumped to 14.7% in April, its highest level since June 1940.

But investors, who always try to anticipate the future results of the companies “expect that the statistics have to increase from the third quarter and is really improving in the fourth quarter,” points out Art Hogan of National Holdings.

They are encouraged in this direction by several signals, such as Uber, which has said that its activities were left to the front during the last three weeks or Ford which said that its production would resume on the 18th of may in the United States.

Several u.s. States have also begun to re-open gradually their economy and “market players do not expect a second wave of contagion that could lead to restriction measures as stringent as those which have recently been imposed,” said Mr Hogan.

The optimism on the upcoming situation is compounded by the fact that “there is currently a lot of money in circulation,” with all the liquidity injected by the us central Bank for the past two months to ensure that markets are functioning well, noted the specialist. What fuel the rise of the indices.

These were also supported on Friday by statements saying that the chinese negotiators and the americans were committed to implement their commercial agreement signed in the beginning of the year despite the outbreak of coronavirus.

A positive signal then that the tensions between the two largest economies in the world seemed to be revived in the last few days.

On the bond market, the rate on 10-year u.s. debt rose, reaching towards 20H15 GMT to 0,6783% against 0,6409% on Thursday evening.

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