Urgent: a shift in Wall Street and oil towards the red zone… and gold gains are close to 2%
The US stock markets witnessed a noticeable decline during these moments of today’s trading, after the session started on a stable note, as this shift came immediately after the release of the US labor market data that contradicted expectations.
The markets witnessed sharp movements immediately after the release of the data, as gold surged to the highest levels of $ 2,000 an ounce, while the dollar deepened its losses, in conjunction with a collective decline in US stock indices.
At the same time, oil fell immediately after the release of data warning of a recession in the US economy, after record gains that began immediately after OPEC’s sudden decision and continued until the moments before the data was released.
The CEO of JPMorgan Bank said that the pressures on the financial sector remain in the wake of the collapse of two banks in the United States last month, and represent a threat that must be addressed by reviewing the regulatory process.
“Any crisis that hurts Americans’ confidence in their banks hurts all banks,” Dimon said, adding that the idea that big banks benefit from the flight of their depositors is absurd.
“The current crisis is not over yet, and even when it is behind us, there will be repercussions for it for years to come, but more importantly, recent events are nothing like what happened during the 2008 global financial crisis,” Jamie Dimon said in his annual letter to shareholders on Tuesday.
Recently released data
The US economy provided nearly 9.931 million jobs, while experts expected 10.4 million jobs to be created in March.
The previous reading was revised down to 10.563 million job opportunities for the month of February, down from 10.824 million job opportunities.
Employment opportunities data is of great importance as it is an indicator of the state of the US labor market and its ability to keep up with rising interest rates, as Jerome Powell uses US job opportunities a lot when talking about the strength of the US market.
US Treasury Secretary Janet Yellen confirmed the slowdown in the pace of money exit from small and medium banks in the United States, noting that the situation has begun to stabilize thanks to the measures taken by US regulators.
Yellen added that US officials are ready to take similar measures again if banks face a new crisis.
Indicators at yesterday’s close
At the close, the Dow Jones Industrial Average rose by 1% (about 327 points) to 33,601 points.
The broader S&P 500 index rose 0.4% (about 15 points) to 4,124 points.
The Nasdaq index fell 0.3% (about 32 points) to 12,189 points.