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Wall Street stocks rebounded on Friday after US job growth far exceeded economists' expectations, suggesting the labor market remains strong despite rising interest rates.
The S&P 500 rose 1.3 percent by early afternoon in New York, while the Nasdaq Composite, which is dominated by technology stocks, rose 1.5 percent.
The United States added 303,000 jobs in March, well above the 200,000 expectations of economists polled by Reuters. The unemployment rate also unexpectedly fell to 3.8 percent from 3.9 percent, according to the Bureau of Labor Statistics.
Chris Zaccarelli, chief investment officer at the Alliance of Independent Advisors, said the data indicated that “the economy is showing no signs of slowing and that consumer spending should be able to hold up in the near term.”
The moves mirrored a sharp sell-off in the previous trading session, which came as fears of escalating tensions in the Middle East sent oil prices to five-month highs above $90 a barrel, raising concerns that stubborn inflation could… Delays central banks from lowering interest rates. .
The Standard & Poor's 500 fell 1.2 percent on Thursday, its biggest single-day decline since mid-February, as traders weighed the prospect of widening conflict in the Middle East and possible Iranian retaliation for a suspected Israeli attack on its consulate in Damascus.
Stocks in Europe and Asia reversed this decline on Friday.
The region's Stoxx Europe 600 index fell 0.8 percent, as did the FTSE 100 index in London. France's Cac 40 fell 1.1 percent, and Germany's DAX fell 1.2 percent.
Japan's Topix index closed down 1.1 percent, while South Korea's Kospi fell 1 percent and Hong Kong's Hang Seng fell 0.4 percent.
Analysts said rising energy prices increased the likelihood that the Federal Reserve and European Central Bank would cut interest rates more slowly this year.
“The rise in oil prices is reviving fears of stagflation,” said Emmanuel Cow, head of European equity strategy at Barclays.
Oil prices have risen in recent weeks as global demand expectations begin to outpace supply growth, and economic data point to a stronger-than-expected economic recovery in the United States, Europe and China.
Brent crude, the international benchmark, was trading at a high level of $91.71 on Friday, the highest level since last October.
“It wouldn't be surprising” if prices reach $100 a barrel this year as OPEC+, the cartel of major oil producers, appears poised to maintain the voluntary production cuts it has attracted, said Bob Ryan, a commodities and energy strategist at BCA Research. Low inventories.
Non-OPEC+ supply growth was also weaker than previously expected, leading the International Energy Agency to predict in March that the oil market would run a “slight deficit” this year, reversing its previous forecast of a surplus.
“These levels are manageable,” said Francisco Blanche, head of global commodities at Bank of America. “If we get too high — above $100 — it will cause real problems for the Fed.”
Traders will pay close attention to the latest nonfarm payrolls and unemployment data from the United States, due later on Friday, for further clues about the outlook for interest rates in the world's largest economy.
