Jakarta, CNBC Indonesia – The United States (US) stock market bounced into the red zone at the opening session on Friday (3/9/2021), following poor employment data in the United States (US) as of August.
The Dow Jones Industrial Average fell 107 points (-0.3%) at 08:30 local time (20:30 WIB) and within 30 minutes to 140.4 points (-0.4%) to 35,303.45. The S&P 500 index fell 7.9 points (-0.17%) to 4,529.05 while the Nasdaq was up 20.9 points (+0.14%) at 15,352.05.
Pay slips per August recorded an increase of 235,000, or far from the expectations of economists in a Dow Jones poll that predicted 720,000. This figure is far from July’s achievement of 1.05 million salary slips.
“This morning’s low payrolls are heavily haunting the tapering outlook as only 235k jobs opened in August, which is likely to put the Fed on hold and extend its tapering plan,” said Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance. CNBC International.
If the spread of the delta variant of the Covid-19 virus continues and worsens the economy, then the Fed has the opportunity to postpone the tapering schedule (reducing bond purchases in the secondary market).
The US central bank (Federal Reserve/The Fed) boss Jerome Powell has confirmed that the reduction program (tapering) Bond buying in the new market will start after the labor data strengthens.
The S&P 500 and Nasdaq got off to a strong start in September, with rallies of 0.6% and 1.3% respectively throughout the month. The S&P 500 index rose 0.3%, to a record 54th rock high so far this year. The Nasdaq also gained 0.14% to a new record high while the Dow Jones added 0.4%.
Yesterday, the S&P 500, Dow Jones and Nasdaq indexes closed higher after claims for unemployment insurance benefits last week reported an increase of 340,000, the lowest since March 2020 and better than economists’ expectations in a Dow Jones poll of 345,000.
CNBC INDONESIA RESEARCH TEAM
(ags/ags)
– .
