After showing a lack of direction early in the session, stocks continue to show poor performance in early trading on Friday afternoon. The Nasdaq rose slightly after seeing the initial weaknesses, while the Dow and S & P 500 remain slightly lower.
Today, the key averages continue to change with varying performances. The Nasdaq is up 20.40 points or 0.1 percent at 15,351.57, while the Dow is down 96.82 points or 0.3 percent at 35,347.00 and the S & P 500 is down 4.23 points or 0.1 percent at 4,532.72.
Unstable trading on Wall Street occurs when traders respond to the Labor Department’s carefully watched monthly employment report, which showed much weaker employment growth than expected in August.
The report suggests a delta variant of coronavirus Is focused on the labor market, but data could also push back plans for the Federal Reserve to begin curtailing stimulus.
The Federal Reserve Board has shown that inflation has reached its target, but we need to confirm further improvements in the labor market before we begin declining asset purchases and raising interest rates.
The Ministry of Labor said the number of non-farm payrolls surged in August with an upward revision of 10.53 million jobs, followed by an increase in 235,000 jobs in August.
Economists expected employment to increase by about 750,000, compared to the 943,000 employment surge initially reported last month.
Despite much weaker employment growth than expected, the unemployment rate fell from 5.4% in July to 5.2% in August, consistent with economists’ estimates.
Lydia Busser, Lead US Economist at Oxford Economics, said: “Nevertheless, the slow pace of employment in the rapidly expanding Delta variant will justify the patient’s tapering approach from the Fed.”
“The FOMC has chosen to wait for a formal tapering announcement until its November meeting, and will cut asset purchases in December or January, depending on employment progress and inflation trends this fall. I believe it will start, “he added.
Meanwhile, growth in the US services sector slowed from a record pace in August, according to another report released by the Institute for Supply Management.
According to ISM, the service’s PMI reached a record high of 64.1 in July and then fell to 61.7 in August, but numbers above 50 still indicate sector growth. Economists expected the index to drop to 61.5.
Oil services stocks fell sharply during the session and the Philadelphia Oil Services Index fell 1.6%.
Weakness in oil service stocks was seen in the fall in crude oil prices, with crude oil delivered in October falling from $ 0.43 a barrel to $ 69.56.
Airline stocks also show significant weakness, as reflected in the 1.5% loss recorded by the NYSE Arca Airline Index.
The Philadelphia Housing Sector Index fell 1.2%, and housing stocks also showed a marked downtrend on the day.
Meanwhile, in the afternoon trading, the NYSE Arca Gold Bug Index rose 2.5% and gold stocks rose significantly.
Gold stocks are rising as precious metal prices skyrocket as gold delivered in December jumps from $ 21.20 to $ 1,832.70 per ounce.
In overseas transactions, stocks market During the trading on Friday, another mixed performance was seen across the Asia Pacific region. Japan’s Nikkei 225 Index surged 2.1%, while China’s Shanghai Composite Index fell 0.4%.
Meanwhile, all major European markets fell during the session. France’s CAC 40 index fell 1.1%, while Germany’s DAX index and the UK’s FTSE 100 index both fell 0.4%.
In the bond market, government bonds fell in response to monthly employment reports. As a result, the yield on benchmark 10-year bonds, which move in the opposite direction of price, rises 2.8 basis points to 1.322 percent.
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Nasdaq Posts Slim Gain, Dow, S & P 500 Remains Slightly Low
Source link Nasdaq Posts Slim Gain, Dow, S & P 500 Remains Slightly Low