Dow closes down 134.51 points amid rally fears, eyeing debt ceiling vote results : InfoQuest

The New York Dow Jones Stock Exchange ended lower on Wednesday (May 31) after the United States released job openings that rose against analysts’ expectations. This made the market worry that it would be a factor that pushes the Federal Reserve (Fed) to continue raising interest rates. While investors are keeping an eye on the results of Congress’ vote on a measure to increase the debt ceiling.

  • The Dow Jones Industrial Average closed at 32,908.27 points, down 134.51 points or -0.41%,
  • The S&P500 index closed at 4,179.83 points, down 25.69 points or -0.61% and
  • The Nasdaq Index closed at 12,935.28 points, down 82.14 points or -0.63%.

Throughout May the Dow fell 3.48%, the S&P 500 rose 0.26% and the Nasdaq rose 5.8%.

The US Bureau of Labor Statistics released results from the Job Openings and Labor Turnover Survey (JOLTS). Jobs, a measure of demand in the labor market, rose by 358,000 jobs to 10.1 million in April. Contrary to analysts’ expectations, it fell to 9.375 million jobs after three consecutive months of decline.

Analysts said that Increase in the number of jobs opening Amid the tension in the labor market, It is a factor that supports the rebound of inflation. Because the employees will have the bargaining power to ask the employer for a pay rise. This will increase the pressure on the Federal Reserve (Fed) to raise interest rates in June.

The latest CME Group FedWatch Tool shows that 66.4% of investors are leaning towards the Fed raising interest rates by 0.25% to a range of 5.25-5.50% at its June 13-14 meeting, and 33.6% leaning towards the Fed holding the interest rate at 5.00-5.25%

The US Congress will vote on a measure to increase the debt ceiling, which is named. “Fiscal Responsibility Act” (Fiscal Responsibility Act) today (June 1) at 7:30 am Thai time, if the House of Representatives approves the bill. It will be forwarded to the US Senate for consideration. and if the Senate approves it will be transferred to President Joe Biden, the leader of the United States, to sign into law in order to continue to come into force.

The process for passing the bill must be completed before the June 5 deadline or the US faces a debt default that may not be easy After more than 20 conservative Republicans announced they would vote to reverse the measure. along with accusing Mr. Kevin McCarthy, Speaker of the US House of Representatives Concessions to President Biden in exchange for minor adjustments to the budget. rather than the major changes agreed upon.

Banking stocks fell 1.1% after the Federal Deposit Insurance Corporation (FDIC) said US bank deposits fell 2.5% in the first quarter of this year.

invidia stock Semiconductor, a major US semiconductor company, fell 5.68percent after its share price hit new highs on Tuesday. and became a listed company with a market capitalization of $1 trillion in trading within a day.

Investors will be keeping an eye on US labor data this week, with the release of May’s private payrolls figures from the ADP and the number of weekly jobless claims.

tomorrow the United States will release non-farm payroll numbers for May. Although analysts expected employment numbers rose 180,000 in May. This slowed from 253,000 jobs in April. The unemployment rate is expected to rise to 3.5% in May from 3.4% in April.

By InfoQuest News Agency (01 Jun ’23)

Tags: dowjones , Dow Jones , Stock Market , New York Stock Exchange


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