Wall Street wants to believe that the 'NFP' will revive the end-of-year rally as the US indices prepare to close their 6th week of gains (the Dow Jones is short by around +0.3%, lagging behind on Thursday with +0.17%, while the 'technos' soared by +1.5%).

The S&P500 (+0.8%) recorded its 3rd best close of the year at 4,585pts, while the Nasdaq-100 jumped +1.5% to 16,025, equalling its best annual close of November 20, buoyed by a new surge in SOX, which jumped +2.8% in the wake of AMD +9.9%, Sirius +4.9%, Illumina and NXP +2.8%, Applied Mat and Microchip +2.6%.... and let's not forget Alphabet's clarion call with +5.3%.

The US indices increased their gains after the publication of weekly jobless claims: they registered a somewhat unexpected drop of -2,000 to 220,000 in the last week of November, when there are usually job losses in distribution after the "Thanksgiving" weekend.
On the other hand, there was a clear drop in "durable" claims with -64.000 to 1.86 million, proof that hiring was strong last month... an interesting indicator on the eve of the release of the 'NFP'.
Reminder: the day before, ADP had published a sharp drop in private-sector job creation in November (to 103,000).

Note that oil hit a new 6-month low of $73.60 in London, as did WTI, at its lowest point of $69 for the first time since the end of June.

Despite this drop in energy prices, which is "going in the right direction" as far as inflation is concerned, T-Bonds fell by 3 basis points to 4.15%, the 30-year ended virtually unchanged at 4.25%, and the 2-year, which is also closely followed, stagnated at 4.60%.

Equity and fixed-income markets have tipped into a mild euphoria in recent weeks, taking for granted the advent of a "goldilocks" scenario over the next few months (an economy that is neither too hot nor too cold), totally ignoring the FED's warnings... tokenism according to buyers.

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