European shares closed lower on Friday, with technology stocks being the weakest performer, a problem plaguing Wall Street.
And at the weekend, Wall Street was hit by a storm of losses that hit many tech stocks.
Today, US Tesla shares, listed on the Nasdaq Technology Index, tumbled about 10%, despite the rise in US stocks in general.
European stocks fell as bond yields rose due to expectations of a jump in inflation, driven by strong US jobs data.
The pan-European STOXX 600 index fell 0.8% in today’s session, as losses led the shares of travel and financial services companies.
However, the index achieved a rise of 0.9% on a weekly basis with the spread of optimism about the eventual economic recovery this year, prompting investors to turn to sectors that are likely to benefit from this recovery.
Auto stocks outpaced their peers, jumping 4.9%.
US Federal Reserve Chairman Jerome Powell said on Thursday that a recent sharp increase in US bond yields does not justify the intervention of the central bank to reduce them.
US and European bond yields rose after his comments, while US yields were also supported by stronger-than-expected US jobs data, which raised inflation expectations.
Technology stocks were the weakest performers in Europe for the second week in a row, while the utilities and healthcare sectors also declined.
Shares of oil companies rose 0.7%, supported by the rise in crude prices to near the highest level in 14 months after OPEC and its allies agreed to increase supplies in April.
Shares of the London Stock Exchange Group fell to the bottom of the STOXX 600 index as analysts scrutinized the expenses of its merger with data and analytics firm Refentiv.
Shares in French Dassault Aviation fell 3% after it reported a decline in adjusted quarterly operating income.
Wall Street’s main indexes opened significantly higher today after data showed faster-than-expected job growth in February.
This boosted the bets on an economic recovery led by massive fiscal stimulus and vaccination activity.
The Dow Jones Industrial Average rose 105 points, equivalent to 0.34%, to 31029.18 points.
The Standard & Poor’s 500 Index opened, up 25.1 points, or 0.67%, to 3,793 points.
The Nasdaq Composite Index increased 136.6 points, or 1.07%, to 12,860,039 points.
And US jobs increased more than expected in February as new cases of Covid-19 decreased, immunization rates accelerated and the government provided additional funds to mitigate the repercussions of the pandemic.
The US Labor Department said the number of jobs in non-farm sectors in the United States rose by 379,000 last month, after rising by 166,000 in January.
In December, jobs fell for the first time in eight months.
Economists polled by Reuters had expected a February job increase of 182,000.
Although the unemployment rate fell to 6.2% last month from 6.3% in January, it remains underestimated due to people who mistakenly classify themselves as “working but absent from work”.