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Before tomorrow’s closely watched US labor market report will help determine the monetary policy path that will support the market during the pandemic, Wall Street’s major stock benchmark index hit a record high on Thursday.
The blue-chip S&P 500 Index and the technology-focused Nasdaq Composite Index hit a record high at lunchtime in New York, both rising 0.3%.
Economists surveyed by Bloomberg expect that Friday’s non-farm payrolls report will show that US employers added 750,000 jobs in August.
Sebastian Mackay, a multi-asset fund manager at Invesco, said that anything near this level is “the market will be satisfied” because it will support the popular claim that the U.S. economy is recovering strongly from the pandemic and that the country’s The central bank is willing to continue its stimulus measures during the crisis.
Mackay added that missing these US employment data will raise concerns about stagflation, as investors fear that as the Delta variant of Covid-19 spreads, rising wages will drive prices up.U.S. consumer price inflation has stabilized at 13-year high Last month, and one-fifth of the states reported A record high The number of Covid-19 hospitalizations in August.
Goldman Sachs strategists commented: “The market trend since June is consistent with the downward revision of growth expectations in the United States, Europe, and especially China. Inflation may last longer.
In recent weeks, investors have hedged their bets by increasing their holdings in companies that are considered relatively unaffected by the economic slowdown, such as technology and healthcare groups.
RW Baird Equity Vice Chairman Patrick Spencer said: “When you are worried about growth, technology stocks usually appear as a defense, especially after these home businesses Flourish Passed the blockade last year.
In Europe, the continent’s technology sub-sector is up more than 13% so far this quarter, outperforming the broader Stoxx 600 index, which rose 4.8% during the same period and rose 0.3% on Thursday.
London’s FTSE 100 index closed up 0.2%, while Frankfurt’s Xetra Dax and Paris’ CAC 40 both rose slightly by 0.1%.
The 10-year U.S. Treasury bond yield is stable at 1.30%, its yield is inversely proportional to its price, and it is sensitive to changes in the perception of future interest rate paths. The German equivalent of German government bond yields fell 0.02 percentage points to minus 0.38%.
The U.S. dollar index, which measures the U.S. dollar against six currencies, was flat and weaker in the past few trading days. The euro rose 0.1% to 1.185 US dollars. The pound rose 0.3% to 1.381 US dollars.
International oil benchmark Brent crude oil rose 2.4% to US$73.38 per barrel after OPEC and its allies agreed on Wednesday to add an additional 400,000 barrels of oil per day to show optimism about future demand.
“OPEC+ continues to increase supply as planned… because demand is improving,” Citigroup analysts said. “However, due to uncertain demand, we expect the group to remain vigilant at every upcoming meeting.”