The Dow Jones Industrial Average opened more than 400 points above the 30,000 mark today, with the market continuing its gains from yesterday.
As of 8:32 p.m. Thai time, the Dow Jones Industrial Average was 29,917.52 points, up 426.63 points, or 1.45%.
The Dow jumped more than 700 points yesterday as investors eased concerns about the Federal Reserve’s accelerating interest rate hikes after the US released weak economic data.
Today’s trading was driven by the dollar’s weakening. After investors were worried earlier that The appreciation of the dollar will affect the profits of listed companies with foreign income.
In addition, the market also received positive factors from the decline in US government bond yields. The 10-year U.S. Treasury Bond is a reference to the price of corporate bonds worldwide. This includes the US mortgage interest rate. If government bond yields rose will make consumers have less money for spending while the cost of paying off mortgage loans increases And companies will face higher costs of debt settlement. causing the company to reduce investment and reduce dividend payments to investors
At the same time, investors reduced their expectations that The Fed will raise interest rates by 0.75% at its monetary policy meeting in November. after the release of weak economic numbers
The CME Group’s FedWatch Tool indicates that investors are weighing 58.5% that the Fed will raise interest rates by 0.75% to 3.75-4.00% at its Nov. 1-2 meeting, after previously overweighting it. up to 68.1%
Investors also raised their weight to 41.5% on expectations the Fed would raise interest rates by 0.50% at the meeting.
Investors ease concerns about the Fed’s accelerating interest rate hikes. After the United States revealed the manufacturing index was the lowest in more than two years.
The Institute for Supply Management (ISM) said its manufacturing index fell to 50.9 in September, the lowest level in more than two years since May 2020. It was lower than analysts’ forecast of 52.3 from 52.8 in August.
The manufacturing index was hit by a contraction in new orders. This was the third contraction this year, while employment contracted for the fourth time.
Investors will keep an eye on the release of non-farm payroll numbers for September on Friday.