© Reuters New York Stock Market Status: The Dow closed positive at 127.17 points amid slowing bond yields and lower than expected hiring.
InfoQuest – The New York Stock Exchange’s Dow Jones closed positive on Wednesday (October 4), while the Nasdaq rose more than 1% after US private sector employment numbers came in lower than expected. This led to a decline in US government bond yields. It is also a factor supporting expectations that the 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 (ADP) said US private sector employment increased by just 89,000 jobs in September. That was below analysts’ expectations of 160,000 jobs and below the 180,000 jobs added in August.
The data gave investors hope that the Fed might delay raising interest rates. After the previous, investors are selling stocks amid fears that the Federal Reserve may raise interest rates again. It may keep interest rates at a high level for a longer period
In addition, private sector employment numbers were lower than expected. It also caused the US 10-year bond yield to slow from a 16-year high and also caused the CBOE Volatility Index (VIX), a measure of investor fears in the US stock market. decreased by more than 6%
Investors returned to buying shares again. After easing concerns about the Fed’s interest rate outlook, the luxury goods group rose stronger. Followed by technology stocks and the marine 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 West Texas Intermediate crude prices fell more than 5% after the United States revealed that gasoline inventories rose more than expected last week. This indicates a slowdown in demand for oil. Exxon Mobil shares fell 3.7%, Chevron shares fell 2.3%, Halliburton shares fell 4.47%, and Occidental Petroleum shares fell 3.87%.
As for other US economic data released last night. The Institute for Supply Management (ISM) reported that the US service sector index fell to 53.6 in September, in line with analyst expectations, from 54.5 in August.
The US Commerce Department revealed that US factory orders rose by 1.2% in August, beating analysts’ expectations for a 0.2% increase after falling by 2.1% in July.
Investors are watching the profits of listed companies, which will begin to be announced in the middle of this month. Meanwhile, LSEG data suggests that third-quarter earnings for S&P 500 companies are likely to increase by about 1.6% year-on-year.
Investors are also waiting to see US employment data this week. To assess the direction of the Federal Reserve’s interest rate, today the United States will reveal the number of weekly unemployment claims. On Friday, September non-farm employment figures will be revealed.
Analysts expect this and non-farm employment numbers are expected to rise by 163,000 jobs in September. After 187,000 jobs were added in August, the unemployment rate in September is expected to fall to 3.7% from 3.8% in August.
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