On the 7th (local time), the New York stock market closed higher. It was attributed to waning expectations for rate hikes after U.S. July nonfarm institutional sector employment came in well below market forecasts.
On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 151.83 points, or 0.28%, to close at 54,036.93. The Standard & Poor's (S&P) 500 gained 47.68 points, or 0.62%, to 7,757.64, and the tech-heavy Nasdaq composite added 342.26 points, or 1.30%, to 26,690.62.
The market was buoyed as expectations for rate hikes faded, lifting investor sentiment. The U.S. Labor Department released that July nonfarm institutional sector employment fell by 23,000 from the previous month. Employment had been expected to increase by 80,000, but instead it declined. New hiring for May and June released earlier was also revised down by 103,000 from the initial figures.
As a result, projections strengthened that U.S. benchmark rate increases would be smaller than expected. The Chicago Mercantile Exchange (CME) FedWatch showed that in the federal funds rate futures market, the probability of a 25 bp hike in the benchmark rate by the end of September was sharply revised down to 41.9% from 55% the previous day. The probability that the benchmark rate will be kept on hold by the end of December also rose to 23.7% from 15.5%, while the probability of a 25 bp hike increased to 44.9% from 41.5%.
Semiconductors led the gains in New York stocks. The Philadelphia Semiconductor Index rose 2.56%, while technology added 1.25%, consumer discretionary 1.34%, and materials 1.52%.
By stock, Nvidia and Intel climbed 2.27% and 1.84%, respectively. Texas Instruments Incorporated finished up 2.76%.
SpaceX, a space launch vehicle corporations, surged 15.83% after 911.5 million shares subject to lockup held by employees and early investors were released. Airbnb, a home-sharing company, rose 17.43% after reporting second-quarter results.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) fell 0.25 point, or 1.65%, to 14.90 from the previous session.