PiCK
Wall Street Cheers Sharp Cooling in US Jobs; Big Tech Leaps [New York Stocks Briefing]
Summary
- U.S. nonfarm payrolls rose by just 29,000 in September, far below market expectations, reducing the likelihood of an additional benchmark interest rate increase.
- On the back of that report, major New York stock indexes including the S&P 500, Nasdaq, and Russell 2000 all moved higher.
- Tesla and Nvidia rose 4.7% and 1.3%, respectively, leading gains in technology and consumer discretionary shares, while Nike, Western Digital, and Seagate Technology fell.
Forecast Trend Report by Period
September Payrolls Rise by 29,000, Far Below Market Forecast of 90,000
Tesla Jumps 4.7%, Nvidia Gains 1.3%; Nike Falls 3.6%
Major U.S. stock indexes closed higher across the board on October 2 as weaker-than-expected September job growth bolstered hopes that the Federal Reserve is less likely to raise interest rates again this month.
The Dow Jones Industrial Average rose 250.40 points, or 0.49%, to 51,176.96 on the New York Stock Exchange. The S&P 500 gained 56.27 points, or 0.73%, to 7,722.72, while the tech-heavy Nasdaq Composite jumped 319.27 points, or 1.19%, to 27,190.86. The small-cap Russell 2000 also climbed 0.9%, posting its biggest one-day gain in a month.
The labor market data lifted equities. The U.S. Labor Department said nonfarm payrolls increased by only 29,000 in September, well below the market forecast of 90,000. August payroll growth was also revised lower, to 133,000 from 162,000.
The unemployment rate rose to 4.2% in September from 4.1% in August. Average hourly earnings increased 3.0% from a year earlier, easing from 3.1% the previous month. The softer readings on both employment and wage growth reinforced the view that the need for another rate increase has diminished.
The probability of a 0.25-percentage-point rate hike this month, as reflected in CME FedWatch, fell to 22.7% from 64.2% a week earlier. The yield on the 10-year U.S. Treasury dropped below 5.17% immediately after the jobs report, then rebounded to 5.28% as oil pared its losses.
Among megacap technology stocks, Nvidia rose 1.3%, helping lead the S&P 500 higher. Tesla surged 4.7% after reporting third-quarter vehicle deliveries of 486,532, topping market expectations. Consumer discretionary shares rose 1.4%, the strongest gain among the S&P 500's 11 sectors, aided by Tesla's advance.
Nike, however, fell 3.6% on weak demand in China and a forecast for an annual sales decline. Western Digital and Seagate Technology each plunged about 10% after news that Japan's Toshiba would expand hard-disk production capacity for artificial intelligence data centers.
For the week, the major indexes turned in a mixed performance. The S&P 500 fell 0.27% and the Dow dropped 1.26%, while the Nasdaq rose 0.45%. The Dow and the S&P 500 have each posted weekly losses in four of the past five weeks.
Lee Song-ryeol, Hankyung.com reporter yisr0203@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.