Wall Street posted its best weekly finish in about a year on Friday, as a slowdown in the US jobs markets put investor concerns of interest rate rises at ease for the time being.
Nonfarm payrolls in the world's biggest economy rose by about 150,000 in October, the Bureau of Labour Statistics reported on Friday, slowing more than expected.
The unemployment rate hit 3.9 per cent, the highest in nearly two years, as monthly wage growth slowed.
The report underscores hopes that the US Federal Reserve is finished raising interest rates to fight off high inflation.
The US Federal Reserve on Wednesday left interest rates unchanged at between 5.25 per cent and 5.50 per cent for a second time, leaving them at a 22-year high amid “elevated” inflation levels, but hinted it would still raise them if required.
However, while apparently moving in a positive direction, markets should wait for more indicators to truly gauge the state of the economy, said Craig Erlam, a senior market analyst at Oanda.
“Some markets, basically since the Fed made its announcement and [chairman Jerome] Powell spoke, have just been on a real positive upwards trajectory,” he said in a podcast.
“But has anything fundamentally changed? I don't think so. Nothing that the Fed said we'd knew about; it was kind of baked in, regardless of how the markets reacted.”
He specifically pointed to two more inflation reports and another jobs update before the next Fed meeting, scheduled on December 12 and 13, to see “if we are moving in the right direction”.
“The jobs report [on Friday] is a good one but … this could easily be a bump in the road. I just don't think it's a game changer, but the markets are behaving like it is,” Mr Erlam said.
At the close on Wall Street, the S&P 500 rose 0.9 per cent – its best finish in 2023 – the Dow Jones Industrial Average added 0.7 per cent, and the tech-heavy Nasdaq Composite jumped 1.4 per cent.
For the week, the S&P 500 and Nasdaq gained 5.9 per cent and 6.6 per cent, respectively, for their best close since November 2022.
The Dow rose 5.1 per cent for its best finish since October 2022.
Year-to-date, the three indices are up 13.5 per cent, 28.8 per cent and 2.8 per cent, respectively.
In Europe, London's FTSE 100 shed 0.4 per cent at the close, while Frankfurt's DAX rose 0.3 per cent, and Paris's CAC 40 declined 0.2 per cent.
In Asia, Hong Kong's Hang Seng Index surged 2.5 per cent, and the Shanghai Composite added 0.7 per cent. Tokyo's Nikkei 225 was closed for a holiday.
In commodities, oil prices slid on Friday and posted a second week of losses in a row after the Israel-Gaza war remained contained.
Brent shed 2.26 per cent, or $1.96, to settle at $84.89, while West Texas Intermediate slipped 2.36 per cent, or $1.95, to finish at $80.51. On a weekly basis, the benchmarks lost 4.8 per cent and 6 per cent, respectively.
Gold, meanwhile, gained as the dollar retreated on hopes that the Fed was finished with raising interest rates.
Spot gold added nearly 3 per cent, or $5.70, to settle at $1,999.20 an ounce. It earlier hit a session high of $2,003.69.
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
Killing of Qassem Suleimani
Dubai Creek Open in numbers
- The Dubai Creek Open is the 10th tournament on this year's Mena Tour
- It is the first of five events before the season-concluding Mena Tour Championship
- This week's field comprises 120 players, 21 of which are amateurs
- 15 previous Mena Tour winners are competing at Dubai Creek Golf and Yacht Club
More coverage from the Future Forum
Normal People
Sally Rooney, Faber & Faber
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
The UAE squad for the Asian Indoor and Martial Arts Games
The jiu-jitsu men’s team: Faisal Al Ketbi, Zayed Al Kaabi, Yahia Al Hammadi, Taleb Al Kirbi, Obaid Al Nuaimi, Omar Al Fadhli, Zayed Al Mansoori, Saeed Al Mazroui, Ibrahim Al Hosani, Mohammed Al Qubaisi, Salem Al Suwaidi, Khalfan Belhol, Saood Al Hammadi.
Women’s team: Mouza Al Shamsi, Wadeema Al Yafei, Reem Al Hashmi, Mahra Al Hanaei, Bashayer Al Matrooshi, Hessa Thani, Salwa Al Ali.
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Killing of Qassem Suleimani
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
The bio
Favourite book: Kane and Abel by Jeffrey Archer
Favourite quote: “The world makes way for the man who knows where he is going.” - Ralph Waldo Emerson, American essayist
Favourite Authors: Arab poet Abu At-Tayyib Al-Mutanabbi
Favourite Emirati food: Luqaimat, a deep-fried dough soaked in date syrup
Hobbies: Reading and drawing
Major matches on Manic Monday
Andy Murray (GBR) v Benoit Paire (FRA)
Grigor Dimitrov (BGR) v Roger Federer (SUI)
Rafael Nadal (ESP) v Gilles Muller (LUX)
Adrian Mannarino (FRA) Novak Djokovic (SRB)
EPL's youngest
- Ethan Nwaneri (Arsenal)
15 years, 181 days old
- Max Dowman (Arsenal)
15 years, 235 days old
- Jeremy Monga (Leicester)
15 years, 271 days old
- Harvey Elliott (Fulham)
16 years, 30 days old
- Matthew Briggs (Fulham)
16 years, 68 days old
