The Dow Jones Industrial Average opened more than 400 points above the 30,000 mark today, with the market continuing its gains from yesterday.
At 20:32 Thai time, the Dow Jones Industrial Average was 29,917.52 points, up 426.63 points, or 1.45%.
The Dow jumped more than 700 points yesterday as investors eased concerns about accelerating Federal Reserve interest rate hikes after the US released weak economic data.
Today’s trade was driven by the weakening of the dollar. After investors were worried before The appreciation of the dollar will affect the profits of listed companies with foreign income.
In addition, the market also received positive factors from falling US government bond yields. The 10-year US Treasury Bond is a reference to the price of corporate bonds around the world. This includes the US mortgage interest rate. If government bond yields have risen it will mean that consumers have less money to spend while the cost of paying off mortgages increases AND companies will face higher costs for paying off debt. forcing the company to cut investments and reduce dividend payments to investors
At the same time, investors lowered their expectations The Fed will raise interest rates by 0.75% at its November monetary policy meeting. after the release of weak economic numbers
CME Group’s FedWatch tool indicates investors weigh 58.5% and the Fed will raise interest rates by 0.75% to 3.75-4.00% at its meeting on 1-2 November , after having previously overweighted them by up to 68.1%.
Investors also raised their weight to 41.5% on expectations that the Fed would raise interest rates by 0.50% at the meeting.
Investors ease concerns about Fed accelerating interest rate hikes. After the US revealed the manufacturing index was the lowest in more than two years.
The Institute for Supply Management (ISM) said its manufacturing index fell to 50.9 in September, the lowest level in more than two years since May 2020. It was lower than analysts’ forecast of 52.3 from 52 , 8 of August.
The manufacturing index was hit by a contraction in new orders. This was the third contraction this year, while employment contracted for the fourth time.
Investors will be keeping an eye on the release of the non-farm payroll numbers for September on Friday.
