New York. Wall Street closed its best week of the year on Friday, with the Nasdaq up more than 5%, thanks to the latest inflation, employment and consumption figures in the United States, which have dispelled the spectre of recession.
After a positive Friday session, with general gains of around 0.20%, the Nasdaq has accumulated a weekly rise of 5.2%, up to 17,631 points; the S&P 500 of 3.9%, up to 5,554 units, and the Dow Jones of 2.9%, up to 40,659 points.
“This week’s economic calendar was packed with solid data that helped to allay recession fears,” Wells Fargo analysts said, recalling the volatility triggered a few days ago by rising unemployment in the US.
Inflation in the United States reached its lowest level in almost three years in July: 2.9% on an annualized basis, one-tenth less than in June, which paves the way for the Federal Reserve to lower interest rates in September.
In addition, US retail sales data came in better than economists had expected, supermarket giant Walmart cited a “steady consumer mood” and weekly jobless claims fell.
Amid this positive data, the yield on the 10-year Treasury bond fell to 3.883% today.
Investors will be on the lookout for fresh monetary policy insights from Fed chief Jerome Powell, who is scheduled to take part in the Jackson Hole (Wyoming) central bankers’ symposium next week.
Pimco analyst Tiffany Wilding argued that the rise in the unemployment rate in July was due to “increased labor supply due to an influx of immigration, rather than the usual pattern of job losses.”
The technology sector was one of the biggest winners of the week, with an 8% gain, and especially the semiconductor subsector (14%), with examples such as chip manufacturer Nvidia, which gained almost 19% cumulatively.
Oil and gold
In other markets, Texas crude futures for September closed at $76.65 a barrel after a drop of almost 2% on Friday, following reports that Qatar asked Iran not to attack Israel while a ceasefire in Gaza is being negotiated.
Gold, a safe haven asset in times of uncertainty, hit a record high of $2,500.99 an ounce, and U.S. futures rose to $2,532, as investors grew confident interest rate cuts would come.
