National debt soothes as employment falls by half in September
New York index rebounds, including NASDAQ 1.35% up
WTI -Brent crude oil plummeted around 5%
When an indicator from a private employment information company showed that new employment in the U.S. in September had decreased to half the level expected by the market, U.S. Treasury yields, which had been running wild, fell slightly and oil prices also showed a calming trend. Accordingly, the falling New York stock market also succeeded in rebounding on the 4th (local time).
However, there are many cases where there were differences between private employment companies and official government statistics, so the market is paying attention to the Ministry of Labor’s employment report released on the 6th.
On this day, on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average ended trading at 33,129.55, up 127.17 points (0.39%) from the previous day, barely rebounding from three consecutive days of decline. The Standard & Poor’s (S&P) 500 index closed at 4,263.75, up 34.30 points (0.81%) from the previous day, and the Nasdaq index closed at 13,236.01, up 176.54 points (1.35%) from the previous day. In particular, the Nasdaq index, which is centered on technology stocks, showed a noticeable uptrend in the hour before the market closed, showing signs of easing fears somewhat.
The New York stock market’s successful rebound was due to a slight decline in U.S. Treasury yields. As of this morning, the interest rate on 30-year Treasury bonds exceeded 5%, but the selling of Treasury bonds slowed in the afternoon, and the interest rate on 10-year Treasury bonds fell to 4.735%, down from 4.801% at the previous level. Jamie Cox, managing partner of Harris Financial Group, told CNBC that “the market is being dragged around by interest rates.”
This is thanks to the fact that September private employment announced today was significantly below market expectations, which has somewhat calmed interest rate fears. According to the National Employment Report by employment statistics company Automatic Data Processing (ADP) released on this day, private sector employment in September increased by 89,000 from the previous month, which is half the market forecast of 160,000. It is also the smallest increase since January 2021. This is a significant decrease compared to the 180,000 new hires the previous month.
International oil prices, which had raised concerns about inflation, fell due to concerns that prolonged high interest rates could lead to an economic recession. On this day, the price of West Texas Intermediate (WTI) crude oil for November delivery on the New York Mercantile Exchange was $84.22 per barrel, down $5.01 (5.6%) from the closing price of the previous trading day. This is the lowest level in over a month since August 31st. On the London ICE Futures Exchange, the price of Brent crude oil for November delivery closed at $85.81 per barrel, down $5.11 (5.6%) from the price challenge. This is the largest decline since July 2022.
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Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.