The major indices of the New York stock market are showing weakness due to the impact of the U.S. private employment shock.
As of 9:30 a.m. Eastern Time on the 2nd, the Dow Jones Industrial Average fell 4.77 points (0.01%) to 44,490.97 on the New York Stock Exchange (NYSE), the S&P 500 index decreased by 4.14 points (0.07%) to 6,193.87, and the Nasdaq index moved down 18.18 points (0.09%) to 20,288.81.
The poor performance of U.S. private employment is analyzed to have amplified economic concerns. According to the Automatic Data Processing (ADP) National Employment Report released that day, private employment in June decreased by 33,000 compared to the previous month.
The market had anticipated an increase of 95,000 jobs, but a decrease was reported instead. This marks the first decline since March 2023.
Investors are closely watching the tariff policies of U.S. President Donald Trump. The president expressed a negative opinion on the extension of mutual tariff suspensions the day before. The mutual tariff suspension is set to expire on the 8th. Trump also noted that he could impose tariffs of 30% or 35% on Japan.
The market is also focused on the U.S. employment report for June, which will be released on the 3rd. The employment report is an indicator that can gauge the direction of interest rate cuts by the Federal Reserve (Fed).
By sector, consumer goods (+0.23%), energy (+0.39%), and materials (+0.43%) are showing upward trends. In contrast, financials (-0.03%), health (-0.49%), industrials (-0.33%), and utilities (-0.54%) are trending downward.
Despite the unfavorable news about poor sales, Tesla rose by 2.5% due to 'material disappearance'. Tesla sold 384,122 units in the second quarter of this year, which is approximately a 13% decrease compared to the same period last year.
Major bank stocks are also showing strength. JPMorgan Chase rose by 0.32%. This is likely due to the announcement of a $50 billion share buyback program. Goldman Sachs increased by 0.56% after proposing a 33% increase in dividends. Morgan Stanley, which announced a $20 billion share buyback, rose by 0.44%.
European stock markets are generally showing strength. The Euro Stoxx 50 index rose by 0.37%, the German DAX index increased by 0.26%, and France's CAC 40 index rose by 1.04%. However, the UK FTSE index fell by 0.19%.
The Chicago Board Options Exchange (CBOE) volatility index (VIX) rose by 0.45 points (2.67%) to 17.28.