The New York stock market rose on the 30th (local time). On the New York Stock Exchange ( NYSE ), the Dow closed at 34,890.24, up 37.57 points (0.11%) from the previous trading day. The S&P 500 index closed at 4,514.87, up 17.24 points (0.38%), and the Nasdaq index, centered on technology stocks, closed at 14,019.31, up 75.55 points (0.54%).
On this day, the market paid attention to the news announced by ADP that private employment and gross domestic product ( GDP ) were slower than expected. Ahead of the Labor Department’s employment report coming out on the 1st of this week, the ADP employment indicator
showing private sector employment came in below expectations, reinforcing the view that the job market is slowing faster than expected. Private sector employment in August increased by 177,000 from the previous month, falling below the 200,000 increase expected by experts compiled by the Wall Street Journal ( WSJ ). Today’s figure is less than half of the previous month’s revised figure of 371,000. The July job announcements announced the previous day fell to the lowest level since March 2021, and private employment also slowed, adding weight to the forecast that employment is slowing faster than expected. Federal Reserve System ( Fed)
) is closely watching whether the job market slows along with inflation. Even though inflation has been slowing, the job market remains tight, raising concerns that inflation may not slow down as quickly as expected.
According to economists, the Labor Department’s August nonfarm payrolls are expected to have increased by 170,000 from the previous month. This is a decrease from 187,000 the previous month. The unemployment rate is expected to remain the same as the previous month at 3.5%.
The provisional U.S. economic growth rate for the second quarter of this year (April to June) announced on this day also fell below both the initially announced preliminary figure and the forecast. According to the U.S. Department of Commerce, seasonally adjusted gross domestic product ( GDP ) in the second quarter was revised to increase at an annual rate of 2.1% compared to the previous quarter. This is similar to the confirmed growth rate of 2.0% in the first quarter, and falls below both the previously announced 2.4% increase and the 2.4% increase predicted by economists compiled by the Wall Street Journal ( WSJ ).
Amid growing expectations for a soft landing in the U.S. economy, the growth rate remained in the 2% range.
As the indicators came out sluggish, the decline in U.S. Treasury yields widened, especially in short-term bonds. The interest rate on 2-year government bonds fell to 4.83% during the day, and the interest rate on 10-year bonds fell to 4.09%. Both 2-year and 10-year bond interest rates hit their lowest levels since August 11.
New York stock market experts assessed that the sluggish economic indicators were positive for stocks in that they lowered the risk of further tightening.
LPL“While the ADP report doesn’t necessarily have a strong positive correlation with the government’s jobs report, the data nonetheless suggests that the overheated jobs market is cooling,” Quincy Crosby, chief global strategist at The Financial, told MarketWatch . . He added that this indicator is “exactly what the Fed wants to see in order to balance the labor market.”
“Yesterday was a typical day where ‘bad news becomes good news,’” Ipek Ozkadeskaya, an analyst at Swiss Quot Bank, told MarketWatch. “Yesterday was a typical day where bad news becomes good news,” he said. “The unexpected decline in job postings in the U.S. and a decline in consumer confidence have led to a decline in U.S. and global risk appetite,” he said. He said he came back to life. “The weak data put Fed hawks aside, strengthened expectations of a freeze in September and made it more likely that there will be no hike in November,” he said.
Meanwhile, the three major indices, including the S&P 500 index, rose for four consecutive trading days. The index continues its upward trend as technology stocks that had been subject to corrections began to rebound and the rise in government bond interest rates eased.
[Feature stocks]
■Technology
stocks Technology stocks rose. Apple rose 1.92% ahead of the new iPhone unveiling event scheduled for the 12th of next month, and Nvidia, which has been on the rise after the earnings announcement, rose 0.98%. Microsoft closed up 0.12%, Amazon 0.12%, Nvidia 0.98%, Meta 0.97%, Alphabet 0.97%, and Netflix 1.09%.
■Electric car owner
Tesla closed at $256.90, up 0.11% on news that U.S. authorities are expanding their investigation into Tesla. Nikola also fell 2.31%, but Rivian rose 2.55 after the news that the company had announced that the base salary for the CEO had been increased to $1 million . Lucid rose 0.47%.
■ HP
Hewlett Packard ( HP ) fell 6.63% on the news that quarterly sales were below expectations.
■Box
File sharing company Box fell more than 12% as its performance 안전놀이터was below expectations and its guidance was poor.
[European Stock Market Closing Status]
Stock markets in major European countries closed slightly lower on the 30th (local time). The STOXX600
index , a pan-European index, closed at 459.29, down 0.54 points (0.12%) from the previous day. The CAC40 index of the Paris stock market closed at 7364.4, down 9.03 points (0.12%), and the DAX index of the Frankfurt stock market of Germany closed at 15,891.93, down 38.95 points (0.24%). On the other hand, the FTSE 100 index of the London stock market closed at 7473.67, up 8.68 points (0.12%). [Chinese stock market closing status]
The Chinese stock market rose on the 30th (local time). As of the close of trading on this day, the Shanghai Composite Index closed up 0.04% and the Shenzhen Component Index closed up 0.26%.
The trading volume of the Shanghai and Shenzhen stock markets again fell below 1 trillion yuan, reaching 984.3 billion yuan.
Looking at the fluctuations of each stock, the upper limit price trend in the semiconductor sector was noticeable, and data security and 6G theme stocks led the rise. On the other hand, securities stocks fell.
Meanwhile, foreign funds today engaged in net selling of 2.463 billion yuan.
[International oil prices]
International oil prices rose following the release of data showing that U.S. crude oil inventories were lower than expected. However, the increase was limited amid concerns about a slowdown in demand due to China’s economic recession. On the New York Mercantile Exchange, the price of West Texas Intermediate ( WTI ) delivered in September ended trading at $81.63 per barrel, up 47 cents from the previous price.
[Gold]
The price of gold, a safe asset, hit its highest in almost a month due to the retreat of dollar and bond interest rates. On the New York Mercantile Exchange, gold futures prices ended trading at $1,973.00, up 0.4% from the previous trading session.
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