The Nasdaq technology index added more than 2.5 percent in Friday’s trading. The S&P 500 and the Dow Jones Industrial Average also finished more than two percent. The Santa Claus Rally finally arrived in the American markets.
The trio of stock indices firmed by more than 2%
The end of the first trading week of the new year was marked by a massive strengthening of stocks on Wall Street. The full trio of stock indices added more than two percent. The tech-heavy Nasdaq firmed the most, firming 2.56 percent.
Reaction to the labour market
The New York Stock Exchange thus reacted positively to the current figures from the US labor market. Nominal wage growth slowed year-on-year in December compared to November, when wages rose by 4.6 percent. In November, their growth was still 4.8 percent.
Experts believe this is one sign of weakening inflationary pressures. This is good news for stock markets, because weakening factors pushing inflation up could lead to a moderation in the pace at which the US Federal Reserve raises its interest rates. And this is good news for stock markets, because liquidity might not disappear from the markets as quickly as before, and stocks could start to strengthen significantly.
