October 28, 2020

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Wall Street opens higher according to the US employment report

Wall Street opens higher according to the US employment report


Photo: ANP

The stock markets in New York opened higher on Friday after the sharp losses the day before under the pressure of strong minus points for the technology sector on Wall Street. The main focus of investor attention is the US government’s employment report, which provides more clarity on the extent of the US economy’s recovery from the corona crisis.

Shortly after the start, the Dow Jones Index recorded an increase of 0.6 percent at 28,465 points. The broad-based S&P 500 rose 0.6 percent to 3,474 points and the Nasdaq technology exchange rose 0.5 percent to 11,516 points. The major graders fell to 5 percent on Thursday. It was the largest single-day decline in the indices since June. This ended a series of profitable days for the Nasdaq and S&P 500, which had hit new record highs.

According to the US Department of Labor, around 1.4 million new jobs were created in August. This is less of an increase than a month earlier, but it was roughly in line with economists’ general expectations. Unemployment in the United States fell to 8.4 percent from 10.2 percent in July. Not only does this have to be good news, it could also signal a withdrawal of Americans from the job market as the chances of getting a new job are less likely.

On corporate news, chipmaker Broadcom is in the spotlight after a better-than-expected quarterly update. Broadcom not only sold more chips to the telecommunications industry and servers, but it also expects the demand for replacement parts for smartphones to grow sharply. Broadcom’s share rose 4.5 percent.

Tesla gained 3.6 percent. The electric car maker has lost more than 18 percent of its market value in the past three days.