The Dow fell nearly 200 points today as the US reported higher-than-expected employment numbers. This will be a factor causing the US Federal Reserve (Fed) to accelerate interest rates.
At 8:37 p.m. Thai time, the Dow Jones Industrial Average stood at 32,543.49 points, minus 183.33 points, or 0.56%.
Investors raised expectations about the Fed’s rate hike by 0.75% at its monetary policy meeting in September. After the United States revealed that the number of jobs increased more than expected today.
The CME Group’s FedWatch Tool shows investors weighed 68.5 percent at the Fed to raise interest rates by 0.75% to 3.00-3.25 percent at its Sept. 20-21 meeting and weighted only 31.5% at the Fed. will raise interest rates by 0.50%
Investors previously weighed 68.5 percent that the Fed would raise interest rates by 0.50% at its meeting on September 20-21 and weighted only 31.5% that the Fed would raise interest rates by 0.75%.
If the Fed raises interest rates by 0.75% in September, it will raise interest rates by 0.75% for the third time after raising 0.75% in both June and July.
Analysts say The number of non-farm payrolls increased more than expected. including a decrease in the unemployment rate and a rebound in the average hourly wage of workers This will allow the Fed to continue raising interest rates to curb inflation.
The US Department of Labor said Non-farm payrolls rose 528,000 in July. It was more than double the 258,000 analyst forecast.
The unemployment rate fell to 3.5%, below analysts’ forecast of 3.6 percent.
The US Department of Labor has also adjusted the number of jobs in May. It increased to 386,000 from the previously reported 384,000 increase and adjusted the number of jobs in June. increased to 398,000 from the previously reported 372,000 increase.
The Labor Department said the private sector added 471,000 jobs, while the government added 57,000.
Meanwhile, the average hourly wage for workers rose 0.5% month-on-month and 5.2 percent year-on-year.
The hourly wage figure is a key focus of the US Federal Reserve (Fed) for signs of inflation.
The number of US labor market entry rates This shows the proportion of the labor force to the total population at 62.1%.