Editor’s Picks, stock news 6:31am.2024-04-03
New York’s Dow Jones Stock Exchange index closed lower on Tuesday (April 2), falling for a second day in a row after the United States revealed higher-than-expected job opening numbers. This has led to US bond yields rising to their highest level in four months and causing investors to worry that the Federal Reserve (Fed) could delay the time to cut interest rates. The market is also under pressure due to Tesla stock falling down
- The Dow Jones Industrial Average closed at 39,170.24 points, down 396.61 points or -1.00%,
- The S&P500 Index closed at 5,205.81 points, down 37.96 points or -0.72% and
- The Nasdaq index closed at 16,240.45 points, down 156.38 points or -0.95%.
The US Department of Labor’s Bureau of Statistics released the results of the Job Openings and Labor Turnover Survey (JOLTS) They found that the number of jobs opened This is a measure of demand in the labor market that the Fed is concerned about. Increased to 8.756 million jobs in February. and above analysts’ estimates of 8.740 million jobs, from 8.748 million jobs in January.
The jump in JOLTS numbers sent the 10-year US Treasury yield to 4.405%, the highest level since November 28, 2023, and left investors uncertain about the outlook for US interest rates. The Fed, with the CME Group’s latest FedWatch Tool indicating that investors have only put 56.3% weight on expecting the Fed to cut interest rates by 0.25% at its June meeting. After giving it a weight of 63.8% last week.
Russell Price, analyst at Ameriprise Financial in Michigan said: “The market is facing ‘Good News in Bad News’ as the latest JOLTS figures indicate that the US economy and labor market remain strong, which good news But the data has the market worried that it could cause the Fed to delay its decision to cut interest rates. It also led to the CBOE Volatility Index (VIX), which is a measure of investor anxiety in the US stock market, rising last night.”
Eight of the 11 stocks in the S&P 500 closed in negative territory, led by the health care and luxury goods indexes, which fell 1.62% and 1.28%, respectively, while the energy and utilities index rose 1.37% and 0.17% respectively
Tesla shares fell 4.9%, another factor weighing on the market. After Tesla revealed that car production figures for the first quarter of 2024 were 433,371 vehicles, down 1.7% year on year. and vehicle deliveries were 386,810 units, down 8.5% year on year. This is the first adjustment since 2020.
Investors will be keeping an eye on the release of US non-farm payrolls figures for March on Friday. Analysts had predicted that employment would increase by just 205,000, slowing after a gain of 275,000 in February. And the unemployment rate is expected to remain stable at 3.9% in March.
Investors are also waiting to see other economic data this week, with March private sector employment numbers from ADP and the March service sector index from the Institute for Supply Management expected to be released today. The US (ISM) on Thursday reveals the weekly number of jobless claims. and trade balance in February
By InfoQuest News Agency (03 April 2024)
Tags: dowjones , Dow Jones , stock market , New York Stock Exchange
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