The New York stock market closed mixed on the 3rd (local time).
This is because the U.S. Department of Labor’s August employment trend report, which financial markets had been waiting for, came as a shock as it fell short of expectations.
However, the Nasdaq Index rose 0.2% on the same day, breaking the all-time high, setting a new record for the third day in a row.
According to CNBC, the Nasdaq Index closed at 15,363.52, up 32.34 points (0.21%) from the previous day, succeeding in continuing its all-time high for three days in a row.
On the other hand, the Dow Jones Industrial Average, which consists of large blue-chip stocks, and the Standard & Poor’s (S&P) 500 Index, which best reflects the market conditions, closed lower.
The Dow fell 74.73 points, or 0.21%, to 35,369.09, and the S&P 500 closed weakly at 4535.43, down 1.52 points, or 0.03%.
The technology sector and telecommunication service sector, which fell sharply the day before, rose 0.38% and 0.11%, respectively, on this day.
The discretionary consumer goods sector rose 0.01%, while the health and real estate sectors rose 0.11% and 0.04%, respectively.
However, six sectors declined.
Consumer staples fell 0.05%, while energy and utilities fell 0.53% and 0.8%, respectively.
The financial sector also fell 0.58%.
In addition, the industrial and materials sectors also recorded a decline of 0.62% and 0.69%, respectively.
The stock market was different from the day before.
The stock market, which turned bearish on the 1st when ADP private employment fell far short of expectations, gained momentum as the Nasdaq and S&P 500 rose to all-time highs on the news of a decrease in the number of new jobless claims for the week on the 2nd. The trend turned to bearish again as the employment flow assessment came to an end.
The U.S. Department of Labor reported that the number of new jobs last month was 235,000, less than a third of the 720,000 expected by the market.
However, the market decline was limited.
The sluggish employment data for August is expected to put the brakes on the Federal Reserve’s (Fed) monetary easing policy rewind, which was expected to be decided at the Federal Open Market Committee (FOMC) on the 21st-22nd of this month at the earliest.
It is almost certain that the Fed will tapering off its $120 billion monthly bond purchases later this year, but a shocking August job cut is making it less likely.
As a result, the Nasdaq index rose, limiting the decline in the index.
The Fed’s tapering is ‘conditional’, as Jerome Powell has always emphasized. Chairman Powell said in an online speech to the Jackson Hole Meeting on the 27th of last month that before making a tapering decision, the strong U.S. employment should be confirmed through future employment trends.
Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, said: “This morning’s surprisingly low number of new jobs has overshadowed the tapering outlook. said
Although the sluggish employment data is casting a shadow on the stock market, it is also positive for the stock market in that the tapering is delayed.
“The initial (market) reaction is a bit complicated, but at least there will be a sense of relief that the Fed has delayed the tapering,” said Yong Yuma, chief investment strategist at BMO Asset Management.
Meanwhile, as the employment trends for August confirmed that the delta mutation of the novel coronavirus infection (COVID-19) is having a real impact on the U.S. economy, including employment, Goldman Sachs chief economist Jan Hatchers pointed out that there is no need to be overly pessimistic.
He said that hospital admissions are declining in some states and new cases are on the decline, he said, and he is optimistic that the pandemic from the spread of delta mutations will ease over the next few months.
Mi-Hye Kim, Overseas Correspondent for Global Economics LONGVIEW@g-enews.com
[알림] This article is for investment judgment reference only, and we are not responsible for any investment loss based on it.
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