The data released so far in the United States shows that the labor market is still solid, exacerbating concerns that the Federal Reserve (Fed) may continue to raise interest rates sharply. The main US stock indexes opened volatile and lower on Thursday (6th), and investors waited for Friday (7th) to announce The September non-farm payrolls data is out.
Before the deadline,Dow Jones Industrial Averagefell more than 170 points or nearly 0.6%,Nasdaq Composite Indexdown nearly 40 points or 0.3%,S&P 500 Indexfell nearly 0.5%,Philadelphia SemiconductorThe index rose nearly 0.01%.
The United States announced this week that the number of people receiving unemployment benefits last week was 219,000, which was higher than market expectations of 203,000 and the revised previous value of 190,000. It was the third increase since July this year, but the number of people receiving unemployment benefits was still near a record low. The job market remains solid.
Several U.S. jobs data so far have shown signs of a healthy labor market, dashing investors’ hopes that the Fed may turn dovish, even though manufacturing data earlier this week showed slowing growth, which at one point reinforced market sentiment for the Fed’s turnaround. pigeon confidence.
San Francisco Fed President Mary Daly and Atlanta Fed President Raphael Bostic said in a recent conversation that the Fed is unlikely to stop raising interest rates due to a weakening economy. Daly pointed to the market’s interest in a rate cut in 2023. Expectations are inappropriate, reaffirming the Fed’s determination to bring inflation back to 2 percent, while Postik said the plan to do so is still in the early stages. Next Friday (7th), the US non-farm payrolls data for September will be closely watched by the market.
In terms of energy, the Organization of the Petroleum Exporting Countries and its partners (OPEC+) agreed on Wednesday (5th) to cut production by 2 million barrels per day, the largest production cut since 2020, aimed at preventing the decline in oil prices caused by the weak global economy. Analysts believe the actual cut could be closer to 1 million barrels, as most OPEC+ members are already producing below quotas.
As of 21:00 on Thursday (6th) Taipei time:
Stocks in focus:
Pyloten (PTON-US) rose 3.71% to $8.80 a share in early trade
Peloton, a fitness equipment maker, said it would lay off 500 jobs, or about 12% of its current workforce, after its shares fell more than 4% in premarket trading. Pyreton Chief Executive Barry McCarthy said the company would be given another six months or so to turn around, and that without it, Pyreton could not survive as an independent company.
Eli Lilly (LLY-US) rose 0.94% to $344.9 a share in early trade
Eli Lilly’s diabetes drug Tirzepatide has received Fast Track approval from the U.S. Food and Drug Administration (FDA) for the treatment of obesity in adults.
Twitter (TWTR-US) fell 1.05% to $50.76 a share in early trade
Social media firm Twitter remains in the spotlight as Musk is working to close a deal with it, reports say Musk has failed in talks to lower the deal price, and private equity firms Apollo Global and Sixth Street Partners are rumored to be pulling out of financing talks.
Today’s key economic data:
- The number of Americans receiving unemployment benefits last week reported 219,000, expected 203,000, the previous value of 190,000
- The number of people receiving unemployment benefits in the United States reported 1.361 million last week, 1.345 million is expected, and the previous value was 1.346 million
- The number of layoffs at challenger companies in the United States in September reported 29,000, the previous value was 20,400
- The annual increase in layoffs by challenger companies in the United States in September was 67.6%, the previous value was 30.3%
Wall Street Analysis:
Kenneth Broux, a strategist at Societe Generale SA, said the market expected to get ahead of Fed policy as a gamble with risk, adding that the Fed did not want to ease financial conditions or take stock markets off and become too comfortable.