Data released so far in the US shows that the job market is still solid, exacerbating fears that the Federal Reserve (Fed) may continue to drastically raise interest rates. Major US equity indices opened volatile Thursday (6th). and down, and investors waited on Friday (7) to announce the release of September non-farm payrolls data.
Before the deadline,Industrial average of the Dow Jonesfell by more than 170 points or almost 0.6%,Nasdaq Composite Indexdown by almost 40 points or 0.3%,S&P 500 Indexfell by almost 0.5%,Semiconductor of PhiladelphiaThe index was up nearly 0.01%.
The United States announced this week that the number of people who received unemployment benefits last week was 219,000, a figure higher than market expectations of 203,000 and the previously revised figure of 190,000. It was the third increase since July this year, but the number of people on unemployment benefits was still close to an all-time low and the job market remains solid.
So far, several US employment data have shown signs of a healthy labor market, dashing investors’ hopes that the Fed will become accommodative, although manufacturing data earlier this week showed slowing growth, which at one point it strengthened market sentiment for the Fed’s turnaround. confidence.
San Francisco Fed Chair Mary Daly and Atlanta Fed Chair Raphael Bostic said in a recent conversation that the Fed is unlikely to stop raising interest rates due to a weakening economy. Daly stressed the market’s interest in a rate cut in 2023. Expectations are inadequate, reaffirming the Fed’s determination to bring inflation back to 2%, while Postik said the plan to do so is still in the early stages. Next Friday (7th), US nonfarm payroll data for September will be closely followed by the market.
In terms of energy, the Organization of Petroleum Exporting Countries and its partners (OPEC +) agreed on Wednesday (5th) to cut production by 2 million barrels per day, the largest production cut since 2020, aimed at preventing the drop in oil prices caused by the weak global economy. Analysts believe the actual cut could be closer to 1 million barrels, as most OPEC + members are already producing below quotas.
Starting at 9:00 pm Thursday (6th) Taipei time:
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Piloteo (PTON-US) rose 3.71% to $ 8.80 per share at the start of the trade
Peloton, a manufacturer of fitness equipment, said it would lay off 500 jobs, or about 12% of its current workforce, after its shares fell more than 4% in pre-market trading. Pyreton CEO Barry McCarthy said the company would be given another six months or so to turn around and that without it Pyreton could not survive as an independent company.
Eli Lilly (LLY-US) was up 0.94% to $ 344.9 per share at the start of the trade
Eli Lilly’s diabetes drug Tirzepatide has received Fast Track approval from the U.S. Food and Drug Administration (FDA) for the treatment of obesity in adults.
Twitter (TWTR-USA) fell 1.05% to $ 50.76 per share at the start of the trade
Social media firm Twitter remains in the spotlight as Musk is working to strike a deal, reports say Musk has failed in talks to lower the price of the deal, and private equity firms Apollo Global and Sixth Street Partners are said to be talks are withdrawing from funding.
The main economic data today:
- The number of Americans who received unemployment benefits last week reported 219,000, expected to be 203,000, the previous value of 190,000.
- The number of people receiving unemployment benefits in the United States reported 1.361 million last week, 1.345 million are expected and the previous value was 1.346 million
- The number of layoffs at challenger companies in the US in September was 29,000, the previous figure was 20,400
- The annual increase in layoffs from challenger companies in the US in September was 67.6%, the previous value was 30.3%
Wall Street Analysis:
Kenneth Broux, a strategist at Société Générale SA, said the market expects to move beyond Fed policy as a gamble with risk, adding that the Fed did not want to ease financial conditions or take out equity markets and become too comfortable. .
