Friday , September 24 2021

They take US stock markets for labor market data

European stock markets were also more positive, for example the Hungarian BUX index managed to hit a new high in Thursday’s trading.

The mood is also positive in the US stock markets: Dow Jones rose 0.57 percent, S&P 500 index rose 0.41 percent and Nasdaq increased 0.67%. Thursday’s investor sentiment was based on weekly unemployment benefits data. According to them, the number of applications for new benefits decreased and meanwhile the number of laid off workers fell to a 21-year low in July. The fact that imports were supported by US firms, which led to a record increase in the US foreign trade deficit in June, is not coincidental with the increase in US consumer demand.

At the same time, it is seen that the seven most important macroeconomic data abroad, the number of people employed outside of agriculture and the unemployment rate stand out with high expectations. The data is also reportedly crucial to Fed decision makers.

The Dow Jones index also rose by 185 points due to the increasing exchange rates in the energy and travel sectors.

Arthur Weise, chief investment officer at Kingsland Growth Advisors, told Reuters that investors expect no further shutdowns in America due to a possible new coronavirus wave and that economic growth could rise further while interest rates remain low. And all of this is favorable for exchanges.

Investors have been volatile over the past few days amid high inflation and uncertainties surrounding GDP growth, but quarterly corporate reports have been able to turn the tide and flirt with the historic high of the S&P 500 index, for example.

The biggest loser of the day was a 13.2% drop on Robinhood Markets, breaking a four-day rising streak reportedly driven primarily by small investors. According to some, the rise of Robinhood is the latest Reddit craze, but how long it will hold up is a question. As you can see in the chart below, its shares were still above $70 on Wednesday, now dropping below $62.

Cover image source: Getty Images

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