Wall Street is trading with a mixed sign this Friday after the strong rebound Thursday, thanks to some weekly unemployment claims better than expected and that have served to calm the spirits in a nervous market about a possible recession. «Initial claims fell from the previous week, and the drop was greater than expected. The report thus eased investor fears, helped restore confidence in the US economy and even allowed the yield on the 10-year US bond to rise again at times above the 4% level it had recently lost after the data was published,» they say at Link Securities. «Even if it is only a temporary respite, it represents a Relief for investors«says Bret Kenwell, investment analyst at eToro. «Any data suggesting that the Federal Reserve is not behind the curve when it comes to its likely rate cut in September is a sign of good news«he adds. For experts, these latest employment data in the US have come to confirm the divergence on the economic cycle that exists with Europe. «While it is true that the latest macroeconomic data in the United States were somewhat weak, the good tone of the ISM services and weekly unemployment claims have allowed to alleviate doubts about its economy. However, in Europe, Monday's PMIs (final data) came to reaffirm the idea of a greater deterioration of the cycle in the Eurozone,» they explain in Renta 4. However, the volatility remains the dominant trend in the market. «Investors are quickly learning the lesson that volatility spikes do not disappear immediately after the initial move. Stocks appear to have bottomed out for now, although it is still early days.«, says Chris Beauchamp, chief market analyst at IG. The last few days have been difficult for the markets, with sharp falls in the selective ones due to the concerns about a possible recessionaggravated by the US July employment report. Massive sales in carry trade operations also contributed to market volatility. Recent unemployment data, however, has changed the narrative, suggesting that the economy is stronger than many thought. In the weekly computationwith the current session still to come, the New York indices are on track to end a week of losses, in which the Nasdaq and the Dow Jones down 0.7%, and the S&P 500 0.5% is left.
COMPANIES AND OTHER MARKETS
On the business level, Paramount has exceeded market estimates with its results and has announced that will cut 15% of its workforce in the US. In other markets, oil West Texas rises 0.30% ($76.51) and the Brent advances 0.23% ($79.37). For its part, the euro appreciates 0.05% ($1.0919), and the ounce of gold adds 0.28% ($2,470). In addition, the 10-year US bond yield relaxes to 3.926% and the bitcoin adds 0.87% ($60,988).