Manufacturing Mayhem: New York Stock Market Plunges Amid Gloomy Economic Indicators
US Stock Markets Decline on First Trading Day of September
All major stock markets in New York, the United States, closed lower today, the first trading day of September. This is an analysis that the market is reacting sensitively to various data due to various uncertainties ahead of the presidential election.
Lim Kyeong-ah, special correspondent in New York, reports that the major stock markets in New York began to decline as soon as they opened and closed with further declines. The tech-heavy Nasdaq fell 3.26% as semiconductor stocks tumbled, with Nvidia in particular plunging more than 9.5%.
September is traditionally the weakest month of the year for stock markets, and investors appear to be on guard. According to market research firm FactSet Research, over the past 10 years, the S&P 500’s monthly return in September has been an average loss of 2.3%, the lowest.
The August manufacturing purchasing managers’ index announced by the Institute for Supply Management (ISM) in the United States rose to 47.2, up from the previous month. However, it fell below the expert forecast of 47.5, raising caution. A reading above 50 indicates economic expansion, while a reading below indicates contraction. The manufacturing sector has been in a ‘contraction’ phase for five consecutive months.
Manufacturing accounts for about 10 percent of the U.S. economy. Timothy Fiore, ISM research committee chairman, stated, “Demand is pent-up as companies are reluctant to invest in capital and inventory due to various uncertainties leading up to the election.”
Another factor that had an impact was the increase in the number of ‘continuing unemployment benefits’ claims, that is, claims filed for unemployment benefits for more than two weeks from August 18 to 24, compared to the previous week.
Experts believe that the market is currently overreacting to all data. “The market is becoming very data-dependent,” said one expert. Melissa Brown, SimCorp Executive Vice President, added, “I also think the market is down so much because it’s the day after a holiday. There’s probably relatively low volume.”
This report was brought to you by Lim Kyeong-ah from MBC News in New York.