The Dow Jones Index continues to decline. Most recently, it dropped nearly 600 points following the US released higher-than-expected numbers of non-farm payrolls. This will be a factor supporting the US Federal Reserve (Fed) to accelerate interest rates.
As of 11:50 p.m. GMT, the Dow Jones Industrial Average was 29,338.80, down 588.14, or 1.97%, while the S&P 500 was down 2.63% and the Nasdaq was down 3.61%.
Energy stocks surged once morest the market. In line with the rising oil prices in the world market
Wall Street is also pressured by the dollar’s appreciation. and the rebound in US Treasury yields following the release of the employment report.
The strength of the dollar has raised investors’ fears that it will affect the bottom line of listed companies with foreign earnings. The rise in 10-year US Treasury bonds, which are US government bonds used as a reference for global bond prices. This includes the US mortgage interest rate. will make consumers have less money for spending while the cost of paying off mortgage loans increases And companies will face higher costs of debt settlement. causing these companies to reduce their investment and reduce dividend payments to investors
The US Department of Labor said Non-farm payrolls increased by 263,000 in September. It was higher than analysts’ estimates of 250,000, but below 315,000 in August.
The unemployment rate fell to 3.5% from 3.7 percent in August.
Investors view that Higher than expected employment figures And the unemployment rate fell to 3.5% in September, indicating strength in the US labor market. And it will be a factor supporting the Fed to accelerate further interest rate hikes.
Investors added that The Fed will raise interest rates by 0.75% at its monetary policy meeting in November. After revealing the number of non-farm payrolls today
If the Fed raises interest rates by 0.75% in November, it will raise interest rates by 0.75% for the fourth time following raising 0.75% in June, July and September. .
Meanwhile, investors are keeping an eye on the minutes of the Fed’s September meeting on Oct. 12 and the Consumer Price Index (CPI) on Oct. 13 for any indication of the Fed’s interest rate direction.
