2023-10-05 18:10:47
© Archyde.com. New York Stock Market Situation: Dow Jones closes positive 127.17 points on slowdown in bond yields and lower-than-expected employment.
InfoQuest – The Dow Jones New York Stock Exchange Index closed positive on Wednesday (Oct. 4), while the Nasdaq Index rose more than 1% following US private sector employment numbers came out lower than expected. This resulted in the US government bond yield falling. It is also a factor supporting expectations that the Federal Reserve (Fed) may delay raising interest rates.
The Dow Jones Industrial Average closed at 33,129.55 points, up 127.17 points or +0.39%, the S&P 500 Index closed at 4,263.75 points, up 34.30 points or +0.81%, and the Nasdaq Index closed at 13,236.01 points, up 176.54 points or +1.35%.
Automatic Data Processing Inc. (ADP) said U.S. private sector employment increased just 89,000 jobs in September. That was lower than analysts’ expectations of 160,000 jobs and lower than the 180,000 jobs added in August.
The data gave investors hope that the Fed might delay its rate hikes. following the previous Investors are selling stocks amid concerns that the Fed may raise interest rates further. and may hold interest rates at a high level for a longer time
In addition, private sector employment numbers came out lower than expected. It also caused the 10-year US bond yield to slow down from its highest level in 16 years and also caused the CBOE Volatility Index (VIX), which is a measure of investors’ worries in the US stock market. decreased by more than 6%
Investors returned to buying stocks once more. After alleviating concerns regarding the Fed’s interest rate outlook The luxury goods group rose the strongest. Followed by technology stocks and the cruise business group Microsoft shares rose 1.78%, Tesla shares rose 5.9%, Amazon shares rose 1.8%, Royal Caribbean Cruise shares rose 1.97%, and Norwegian Cruise Line shares rose 3.8%.
However, energy stocks fell. After WTI oil prices fell more than 5% following the United States revealed gasoline stocks rose more than expected last week. This indicates sluggish oil demand. Exxon Mobil shares fell 3.7%, Chevron shares fell 2.3%, Halliburton shares fell 4.47%, and Occidental Petroleum shares fell 3.87%.
For other US economic data released last night. The Institute for Supply Management (ISM) reported that the US services sector index dropped to 53.6 in September, in line with analysts’ expectations, from 54.5 in August.
The US Department of Commerce revealed that U.S. factory orders rose 1.2% in August, beating analyst expectations for a 0.2% increase following falling 2.1% in July.
Investors are keeping an eye on listed companies’ earnings, which will begin reporting in the middle of this month. Meanwhile, LSEG data indicates that third-quarter earnings of companies listed on the S&P 500 index are likely to increase by regarding 1.6% year-on-year.
Investors are also waiting to see US labor data this week. To assess the Fed’s interest rate direction, today the United States will reveal the number of weekly jobless claims. On Friday, the figures for non-agricultural employment in September will be revealed.
Analysts predict that Non-agricultural employment figures will increase by 163,000 jobs in September. After adding 187,000 jobs in August And it is expected that the unemployment rate in September will drop to 3.7% from 3.8% in August.
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