Market with Hope: US Labor Market Data Ignites Rate Cut Fantasy

Wall Street closed the trading week with confidence, buoyed by fresh employment data that fueled hopes for a soon-to-come cut in key interest rates, encouraging investors to further drive up stock prices. Although the Dow Jones Industrial saw only a moderate rise and remains shy of its peak, technology stocks reached new heights. The Nasdaq 100 continued its record course with a slight gain, while the S&P 500 looked back on a profitable week with an increase, invoking historical comparisons. At first glance, robust employment figures were scrutinized more critically by ING analysts, who pointed to downwardly revised prior values and flat wage growth – signs of a potential cooling of the labor market. Meanwhile, U.S. pharmaceutical giant Eli Lilly faced delays in the approval of an Alzheimer's drug, leading to uncertainty among investors, while Biogen benefited from this development. In the technology sector, Broadcom largely met high expectations in the AI segment but could not make further gains after strong increases in value. In the meantime, Nvidia shares continued their ascent, closing in on market capitalization heavyweights Apple and Microsoft. General Electric impressed the broader market with a significant share price gain, driven by a compelling investor day for the aviation and aerospace segment. At the end of the trading week, a multifaceted picture emerged, with a mix of confidence and caution, as different sectors told their own stories.