Amid indicators showing a deterioration in employment conditions in the United States, concerns about economic slowdown have increased, leading to a downturn in the three major indices of the New York stock market on the 5th (local time).
On this day in the New York stock market, the Dow Jones Industrial Average fell by 220.43 points (-0.48%) from the previous session to close at 40,400.86. The Standard & Poor's (S&P) 500 index closed down 20.58 points (-0.32%) at 6,481.50, and the technology-focused Nasdaq Composite index fell 7.31 points (-0.03%) to close at 21,700.39.
The U.S. Department of Labor announced that non-farm jobs in the United States increased by 22,000 in August compared to the previous month. This figure significantly fell short of the expert forecast compiled by Dow Jones (75,000).
As employment conditions in the United States unexpectedly worsened in August, expectations grew that the Federal Reserve (Fed) would implement an interest rate cut in September, and the magnitude of the ultimate rate cut is also expected to increase.
With growing expectations for an interest rate cut, the three major indices of the New York stock market briefly surpassed their all-time highs during the early trading session.
However, investor sentiment dampened as they focused on concerns about an economic recession stemming from the employment deterioration. Consequently, all three indices renounced their gains and turned to decline during the trading session.
Meanwhile, semiconductor corporation Broadcom surged 9.4% to close the trading session after announcing performance that exceeded expectations the day before. News that Broadcom plans to release chips to train and operate AI models in collaboration with OpenAI next year also boosted the company's stock price.
In contrast, NVIDIA, which dominates the cutting-edge AI chip market, fell 2.7% on this news.