The New York Stock Exchange ended higher. It is analyzed that this is the effect of improved investor sentiment as international oil prices showed a downward trend amid the favorable employment indicators for March.
At the New York Stock Exchange (NYSE) on the 1st (local time), the Dow Jones Industrial Average closed at 34,818.27, up 139.92 points (0.40%) from the previous day. The Standard & Poor’s 500 Index rose 15.45 points (0.34%) to 4545.86, and the Nasdaq Index finished at 14,261.50, up 40.98 points (0.29%) from the battlefield.
The market paid attention to the results of the US employment report for March. U.S. nonfarm payroll jobs rose 431,000 in March, beating the Wall Street Journal’s forecast of 490,000. However, as February employment increased by 750,000 and January employment increased by 504,000, the monthly average employment recorded an increase of 562,000 in the first quarter of this year.
The unemployment rate also fell to 3.6%, close to 3.5%, the 50-year low recorded before the pandemic. Analysts said the stock market was relieved when it confirmed that new jobs in the US continued to rise.
The New York Times reported that the average monthly job growth over the past six months has increased by 600,000, and the U.S. economy has recovered more than 90% of the 22 million jobs lost when the economy was worst hit by the pandemic in the spring of 2020. did.
However, as the yields of the 2-year and 10-year Treasury bonds rebelled, some raised concerns that an economic downturn would occur. The yield on the two-year Treasury bond rose to 2.468% on the same day. The 10-year Treasury bond yield also rose to 2.454%. In general, a yield inversion, when long-term government bond yields fall below short-term government bond yields, is considered a harbinger of a recession.
Oil prices fell slightly on the news that member countries of the International Energy Agency (IEA) agreed to export additional oil reserves following Korea. On the New York Mercantile Exchange (NYMEX), West Texas Intermediate (WTI) delivery in May ended at $99.42 per barrel, down 0.86 (0.86%) per barrel. On the London ICE Futures Exchange, Brent crude for June, the benchmark for international oil prices, fell 0.32 dollars per barrel to 104.39 dollars. It is the first time in two weeks since the 16th that WTI price fell below $100 a barrel.
Other economic indicators released today were good.
The Manufacturing Purchasing Managers’ Index (PMI) for March released by the Association for Supply Management (ISM) recorded 57.1. The indicator fell below the 58.6 level recorded in February and the expert estimate of 59, but continued to expand, surpassing 50.
The manufacturing Purchasing Managers’ Index (PMI) for March, compiled by Standard & Poor’s Global, was 58.8, beating both the previous month’s 57.3 and analysts’ expectations of 58.5.
By industry, real estate (2.02%), discretionary consumer goods (0.21%), and consumer staples (1.25%) rose. On the other hand, finance (-0.21%), industry (-0.7%) and technology stocks (-0.17%) fell.
Tech stocks fluctuated: Alphabet (0.8%) and Microsoft (0.4%) rose, but Apple (-0.2%), Meta (-1.1%) and Tesla (-0.6%) fell. Electric vehicle owners Rivian and Lucid fell 7.6% and 3.45%, respectively.
Chinese stocks strengthened today after reports that the Chinese government is considering sharing the results of corporate audits with foreign regulators. Didi Global soared 12.8%, as did Nio (4.2%), Alibaba (1.3%) and Baidu (6.6%).
Experts said that there are still growing concerns about the market, such as the inversion of long-term and short-term government bond yields, but it is not interpreted as a signal for a large sell-off.
Keith Lerner, strategist at Truist Advisory Services, told CNBC that the yield inversion is a warning that the Fed could make a good soft landing. It suggests,” he explained.
Send articles on social media