Wall Street shares hit record highs ahead of crucial jobs report – .

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Wall Street shares hit record highs ahead of crucial jobs report – .


Wall Street shares hovered to new all-time highs on Thursday, after weekly data suggested employment in the world’s largest economy was starting to stabilize.

The blue-chip S&P 500 Index finished up 0.6% in New York City, marking a new closing record high, although it edged up during the trading day a week ago. The tech-rich Nasdaq climbed 0.8%, a new record too, after data showed the number of Americans actively receiving unemployment benefits fell to a pandemic low.

Ahead of Friday’s closely watched non-farm wage data, the US Department of Labor on Thursday reported 385,000 original jobless claimants for the last week of July, up from 399,000 the week before.

Ahead of the release of last month’s payroll report, economists polled by Bloomberg predict that the U.S. economy will have created 870,000 jobs in July, up from 850,000 in June, while the unemployment rate is expected to drop to 5.7 %. against 5.9% in June.

A strong job impression would intensify speculation about when the US Federal Reserve could start cutting its $ 120 billion in monthly asset purchases, which have supported the economy during the pandemic. “We expect the progressive rhetoric may lead to equity market volatility, given the strained technical indicators,” Credit Suisse analysts said.

Goldman Sachs says the rise of Wall Street must go further this year. Analysts at the bank estimated that the S&P 500 would gain another 7% by the end of 2021 – in addition to the index gains of 17% so far this year – based on a bullish estimate that the company’s earnings per share would increase. 45% throughout this period.

“We expect stronger revenue growth and greater expansion in pre-tax profit margin, as companies successfully manage costs and high-margin tech companies become a larger share of the index.” They wrote.

In Europe, the region-wide Stoxx 600 closed up 0.4% to another record high, while London’s FTSE 100 edged down 0.1% after the Bank of England cut back. acknowledged that a “slight tightening” may be needed over the next two years after its last political meeting on Thursday.

The UK central bank said economic growth was “slightly” above expectations. But he also noted “difficulties in matching available jobs and workers” and “uncertainty” as to how the UK economy would react to the end of the leave scheme put in place to cope with the effects of the pandemic.

The BoE’s announcement triggered a brief drop in UK government bond prices, with the 10-year gilt yield peaking at 0.54% before ending the day at 0.52%.

In Asia, the Hong Kong Hang Seng index fell 0.8% and the CSI 300 index of stocks listed in Shanghai and Shenzhen fell 0.6% as China imposed new travel restrictions on the market. nationwide as cases of the Delta variant spread to 15 provinces.

Global benchmark Brent crude oil rebounded 1.4% to $ 71.33 a barrel but remained about 6% lower for the week amid fears the spread of the virus could lower fuel demand. outweighed tensions in the Middle East with Iran, which supported crude prices.

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Robert Armstrong dissects the most important market trends and explains how the best minds on Wall Street are reacting to them. Sign up here to receive the newsletter directly to your inbox every day of the week

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