2023-08-30 23:31:46
The Dow Jones New York Stock Exchange posted a fourth consecutive gain on Wednesday (Aug. 30) after the latest data showed the US economy slowing. This supported expectations that the US Federal Reserve (Fed) will not raise interest rates at its September meeting.
The Dow Jones Industrial Average closed at 34,890.24 points, up 37.57 points, or +0.11%, the S&P 500 closed at 4,514.87 points, up 17.24 points, or +0.38%, and the Nasdaq closed at 14,019.31, up 75.55 points, or +0.54%.
Automatic Data Processing, Inc. (ADP) said U.S. private sector employment rose by only 177,000 in August. That was below analysts’ estimates of 200,000 jobs and below July’s 371,000 increase, reflecting the cooling of the US labor market.
The US Commerce Department released its second estimate for gross domestic product (GDP) for the second quarter of 2023, showing GDP growth of 2.1%, below analysts’ estimates of 2.4% and below the 2020 estimate. 1 at 2.4% after a 2.0% expansion in the first quarter of 2023.
Rob Haworth, an analyst at US Bank Wealth Management, said weaker economic and labor data helped ease investor concerns about the Fed interest rates. gradual or soft landing It is also a factor driving growth stocks and other types of risky assets.
Meanwhile, Sonu Varges, an analyst at Carson Group, said the market has now returned to traditional investment mode. “Bad news is good news,” which often occurs when investors are concerned about interest rates and the Fed’s monetary policy. The sluggish economic data will halt the rise in US Treasury yields. This will be a positive factor for the stock market.
The latest data from CME Group’s FedWatch Tool shows investors are 89% weighing in on the Fed holding rates at 5.25-5.50% at its September meeting. This is up from the previous poll’s 86%. In addition, investors weighed 54% that the Fed would hold interest rates unchanged at its November meeting. This is up from the previous survey at 52%.
Nine of the 11 stocks that make up the S&P 500 finished in positive territory, led by the technology index up 0.83% and the energy sector up 0.51%.
Apple shares rose 1.9% after the company announced an event dubbed “Wonderlust” at the Steve Jobs Theater in Cupertino. California on Tuesday, Sept. 12 at 1:00 p.m. US time. or at midnight Thai time It is expected that Apple will launch the iPhone 15 at this event.
Shares of Nvidia, the chipmaker, rose 1% and closed at a record high. Invidia shares were traded at $35.5 billion. This is the highest among other companies traded on the US stock market.
Mastercard and Visa stocks each gained about 0.5% following reports the two companies are preparing to raise credit card fees.
Shares of HP, the maker of printers and personal computers (PCs), fell 6.6% after the company reported lower-than-expected earnings. It also lowered its earnings forecast for fiscal year 2023 due to the impact of the slowing Chinese economy.
Investors are keeping an eye on the release of the US Personal Consumption Expenditure (PCE) Price Index today, with the PCE index being the Fed’s primary focus on inflation. Because it can detect changes in consumer behavior. and covers a broader range of prices for goods and services than the Consumer Price Index (CPI).
Investors are also looking forward to the US August nonfarm payrolls data on Friday. While analysts expected Employment numbers rose by 170,000 in August. after adding 187,000 jobs in July The unemployment rate in August is expected to remain stable at 3.5%.
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