The three major indices of the New York Stock Exchange started with a slight upward trend on the 4th (local time). Despite indicators showing a cooling labor market, market participants are in a wait-and-see stance until the 'August non-farm payroll' data is released.
As of 9:50 a.m. on the day, the Dow Jones Industrial Average was trading at 40,322.03, up 50.80 points (0.11%) compared to the previous trading day at the New York Stock Exchange (NYSE). The Standard and Poor's (S&P) 500 index was up 11.66 points (0.18%) at 6,459.92, and the Nasdaq composite index was up 35.40 points (0.16%) at 21,533.13.
The stock index, which started with a slight upward trend, is currently fluctuating in a stable range. As U.S. employment-related indicators continue to send weak signals, it is analyzed that it has not been able to expand its gains.
On the same day, the U.S. employment information provider Automatic Data Processing (ADP) announced that private sector employment in the U.S. increased by 54,000 from the previous month, which is about half of the 104,000 from the previous month (July). The expert forecast compiled by Dow Jones (75,000) was also missed.
The number of new unemployment insurance claims in the U.S., reported by the Department of Labor, also exceeded expectations, signaling a slowdown in employment.
As such, the signals of a cooling labor market have led to a prevailing outlook that the U.S. Federal Reserve (Fed) will implement an interest rate cut this month. However, since this rate cut is a reaction to the slowdown in employment, it is difficult to expect it will have a uniformly positive impact on the securities market. The non-farm payroll report for August, scheduled to be released on the 5th, has therefore become crucial.
Jamie Cox, managing partner of Harris Financial Group, noted, "The Fed's labor market liberalization is over," and added, "Since the ADP data continues to support the claim that the pace of positive changes in the labor market has slowed significantly, the Fed will balance the risks with a rate cut in September."
By individual stocks, Amazon is up more than 3%. By sector, technology, communication services, utilities, and materials are experiencing declines.
European stock markets are mostly showing strength. The Euro Stoxx 50 index is up 0.32% compared to the previous trading day. The French CAC 40 index is down 0.35%, while the German DAX index and the British FTSE 100 index are up 0.75% and 0.46%, respectively.
International oil prices have plummeted by more than 1%, continuing a downward trend from the previous day. The price of the nearest delivery, West Texas Intermediate (WTI) crude oil for October, has dropped 1.33% to $63.12 per barrel.