The key facts

  • Dow Jones fell 0.46% to 51,285.73, S&P 500 gained 0.31%, Nasdaq rose 1.09%
  • The US economy added 165,000 jobs in October versus a forecast of 65,000; unemployment fell to 4.1%
  • European indices closed in the red: Stoxx Europe 600 down 1.00%, DAX 40 down 1.92%

Mixed close after a sharp drop

US stock markets closed on Friday with mixed results after heavy losses on Thursday caused by uncertainty in the Middle East, Anadolu reports. The Dow Jones Industrial Average fell 237.33 points, or 0.46%, to 51,285.73. Meanwhile, the S&P 500 gained 0.31% (23.13 points) to 7,376.86, and the Nasdaq Composite rose 1.09% (264.43 points) to 24,579.42. The VIX volatility index, known as the 'fear index,' dropped 9.23% to 25.58 — the decline after Thursday points to a partial easing of panic sentiment, although the level remains elevated.

The Iran factor and strong employment data

The backdrop for the swings is the situation around Iran: last week, commentator Tucker Carlson said the Trump administration may be days away from a nuclear strike on Iran. US President Donald Trump said on Friday that Washington is negotiating with Tehran: 'We won against Iran. Things with Iran are very good, we are talking with Iran.' Against this backdrop, strong labor market data came out: in October, the US economy added 165,000 jobs versus expectations of 65,000, while unemployment fell to 4.1%. Job growth accelerated compared with the revised September figure of 60,000 and exceeded the average monthly gain over the previous 12 months (48,000). The combination of geopolitical uncertainty and strong data helps explain the mixed dynamics: technology stocks on the Nasdaq recovered from the drop, while the Dow did not.

Commodities and European markets

Energy prices ended the week lower: Brent futures fell 0.39% to $97.9 per barrel, and the European gas index dropped 4.3% to €86.8. Gold also fell 0.65% to $4,065 per ounce. European stock markets closed lower across the board: the pan-European Stoxx Europe 600 lost 1.00% to 648.33 points, the British FTSE 100 fell 1.01% to 10,673.94, the German DAX 40 dropped 1.92% to 25,820.36, and the French CAC 40 lost 0.81% to 8,139.00. Italy's FTSE MIB fell 0.90% to 50,052.96, and Spain's IBEX 35 declined 0.60% to 19,369.50. Thus, while the US market partially recovered from Thursday's fall by the end of the week, the European market remained in the 'red zone' across all major indices.