Strong tech gains lifted Wall Street on Friday. Meta CEO Mark Zuckerburg became 297 billion Norwegian kroner richer after Meta’s stock fell.
Updated just now
One hour before stock market opening on Wall Street on Friday, the US authorities published figures on job growth, wage development and employment, the so-called nonfarm payrolls figures.
In January, 353,000 new jobs were created outside agriculture, well above the 185,000 that economists had expected in advance, according to Bloomberg’s estimates.
In the pre-trade there was a cheerful mood, which turned after the labor market figures came.
This is what it looks like for the benchmark indices at closing time:
- The collective index S&P 500 is up 1.07 percent – to a new record level. The previous record was set on Monday this week.
- The technology index Nasdaq climbed 1.74 percent
- The Dow Jones is up 0.35 percent
Rise for Meta
The Meta share surged 20 percent in Friday’s trading, after the company delivered strong figures for the fourth quarter on Thursday evening.
For the first time, the company, which owns Facebook, paid out a dividend.
The strong share rise brings with it a solid increase in Meta CEO Mark Zuckerberg’s net worth.
During Friday, Zuckerberg moved up Bloomberg’s billionaire index and now holds fifth place, according to Marketwatch.
His fortune – and Meta stock – have never risen so much in a single day before, according to the news website.
Microsoft had a turnover of 62 billion dollars – cautious share decline
Zuckerberg owns 13 percent of Meta. The rise of 20 per cent in Friday’s trading gives his shareholding a value increase of 28 billion dollars – 297 billion Norwegian kroner. The value of Zuckerberg’s Meta shares now amounts to USD 165 billion – equivalent to NOK 1,750 billion.
Meta is just one of several tech giants that have delivered quarterly reports this week.
Microsoft, Apple, Amazon and Alphabet have also been in the fire.
Like Meta, Amazon delivered strong figures for the past quarter. The share rose 7.9 percent in Friday’s trading.
Increased interest rates
US Treasury yields rose after the stronger jobs figures. The interest rate on government bonds with a maturity of two years is up almost 0.20 percentage points to 4.39 per cent.
The interest rate on this type of bond often reflects interest rate expectations in the market.
– Well, I think we can officially say goodbye to an interest rate cut in March, and probably a May one, says Alex McGrath at NorthEnd Private Wealth to Bloomberg.
353,000 new jobs were created in the US in January
Senior economist at DNB Markets, Knut A. Magnussen, also believes that interest rate cuts may now lie further ahead than many might have hoped.
– There will be no need for an interest rate cut in the first place, he told E24 after the release of the figures.
The nonfarm figures showed higher wage pressures, strong employment growth and low unemployment, according to the senior economist.
– This will make it more difficult to bring inflation down, said the DNB economist.