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Treasury yields fall as U.S. private employment falls by half… New York stock market rebounds

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As U.S. Treasury yields, which had soared, fell slightly, the New York stock market successfully rebounded from the previous day’s down market.

According to CNBC on the 4th (local time), the Dow Jones Industrial Average, centered on blue-chip stocks, ended trading at 33,129.55 on the New York Stock Exchange (NYSE), up 127.17 points (0.39%) from the previous day.

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The Standard & Poor’s (S&P) 500 index, which focuses on large-cap stocks, closed at 4263.75, up 34.3 points (0.81%) from the previous day.

The Nasdaq index, centered on technology stocks, closed at 13,236.01, up 176.54 points (1.35%) from the previous trading day.

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The U.S. Treasury market showed stability following the announcement by employment information company Automatic Data Processing (ADP) that employment growth in the U.S. slowed significantly last month.

ADP announced in a report today that employment in private companies in the United States increased by 89,000 in September compared to the previous month.

This is down by half from the upwardly revised 180,000 the previous month and below the 160,000 expected by economists surveyed by Dow Jones.

This is a result that is contradictory to the private job recruitment and turnover report (JOLTS) released the previous day. The U.S. Department of Labor announced the previous day that the number of job postings in August was 9.61 million, exceeding the forecast of 8.8 million.

The 10-year government bond interest rate fell to the low 4.7% range. The two-year government bond interest rate is also moving below 5%. However, due to the surge in long-term interest rates, home mortgage interest rates rose by nearly 8%. This caused mortgage demand to fall to its lowest level since 1996.

Meanwhile, international oil prices plummeted as concerns about an economic slowdown due to prolonged high interest rates emerged.

On this day, on the New York Mercantile Exchange, West Texas Intermediate (WTI) crude oil for November delivery closed at $84.22 per barrel, down $5.01 (5.6%) from the previous trading day. On the London ICE Futures Exchange, North Sea Brent crude futures for November delivery were also traded at $85.81 per barrel, down $5.11 (5.6%).

Source: Donga

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