U.S. non-farm payrolls in November exceeded expectations, dampening the Fed’s hope of cutting interest rates early next year. Major indexes opened lower | Anue Juheng – U.S. Stock Radar

Major U.S. stock indexes opened lower on Friday (8th) as U.S. non-farm payrolls in November far exceeded expectations, suggesting the job market is still resilient and dampening market hopes for the Federal Reserve (Fed) to cut interest rates in March next year.

before deadline,Dow Jones Industrial Averagefell more than 20 points or nearly 0.1%,Nasdaq Composite Indexfell nearly 40 points or nearly 0.2%,S&P 500 Indexfell nearly 0.1%,Philadelphia SemiconductorThe index rose nearly 0.2%.

The latest data released by the United States showed that the number of new non-farm jobs increased to 199,000 in November, which was higher than market expectations. At the same time, the unemployment rate unexpectedly dropped to 3.7%, the labor participation rate increased slightly, and the wage growth rate for the month also beat the market. expected.

U.S. Treasury yields climbed after the data was released, as the jobs data supported speculation that the Fed would cut interest rates next year as being overdone. The rate-sensitive two-year Treasury yield rose 10 basis points in the short term to 4.7%,dollar indexAlso moving higher.

Florian Ielpo, an analyst at Lombard Odier Asset Management, said the November non-farm payrolls report will give the Fed reason not to cut interest rates in March – so the Fed should significantly revisit its bets.

Richard Flynn, an analyst at Charles Schwab in the UK, believes that today’s better-than-expected employment report shows investors that labor market demand is still strong, which may undermine public hopes that the Fed will cut interest rates sooner rather than later. This month’s jobs report did not reflect the cooling that the market might have hoped for, so it could affect expectations for Fed policy in the coming months.

Toggle AI analyst Giuseppe Sette pointed out that this non-farm payrolls report puts the Fed in a wait-and-see mode and is not in a hurry to cut interest rates when the job market is strong – in fact, it may be too early to cut interest rates. The data suggests that, for now, the economic slowdown is not having an impact on the labor market.

As of 22:00 Taipei time on Friday (8th):

Focus stocks:

Broadcom (AVGO-US) rose 0.61% to $927.85 per share in early trading

The last quarter results released by Broadcom showed that its fourth-quarter adjusted profit per share surged to US$11.06, higher than analysts’ expectations; overall revenue was US$9.3 billion, an annual increase of 4.1%, exceeding analysts’ expectations. The company estimates that the rapid expansion of AI computing will help offset its slowing sales.

Huida (NVDA-US) rose 0.58% in early trading to $468.67 per share

Reuters reported on Friday, citing people familiar with the matter, that U.S. chip giant Huida will discuss a semiconductor cooperation agreement with the country’s technology companies and authorities at a meeting in Hanoi, Vietnam next Monday (11th). The report pointed out that Vietnam, a Southeast Asian country, has large chip assembly plants, including Intel (INTC-US) the world’s largest factory. The country is trying to expand into chip design and even chip manufacturing as trade tensions between the United States and China create opportunities for Vietnam in this strategic industry.

apple (AAPL-US) fell 0.10% in early trading to $194.07 per share

India’s largest conglomerate, Tata Group, plans to build one of the country’s largest iPhone assembly plants; the move is expected to accelerate Apple’s manufacturing expansion in India; according to people familiar with the matter, the plant may have about 20 assembly lines and It will employ 50,000 workers within two years and aims to be operational within 12 to 18 months.

Today’s key economic data:

• The number of new non-farm jobs in the United States in November was 199,000, compared with the expected 180,000, and the previous value of 150,000.
• The U.S. unemployment rate in November was 3.7%, expected to be 3.9%, and the previous value was 3.9%
• The average weekly working hours in the United States in November was 34.4 hours, compared with the expected 34.3 hours, and the previous value of 34.3 hours
• The average hourly wage growth rate in the United States in November was 4.0%, compared with the expected 4.0% growth rate, and the revised previous value was 4.0%
• The average hourly wage increase in the United States in November was 0.4%, which was expected to be 0.3%, and the previous value was 0.2%
• The U.S. labor force participation rate in November reported at 62.8%, 62.7% expected, and the previous value of 62.7%
• U.S. consumer confidence index in December is expected to be 62.0, compared with the previous value of 61.3
• U.S. consumers expect one-year inflation in December to be 4.3%, up from 4.5% in the previous month
• U.S. consumers expect five-year inflation in December to be 3.1%, down from 3.2% in the previous month

Wall Street analysis:

Bank of America strategist Michael Hartnett said U.S. stocks will be affected in the first quarter of next year as rising bond prices will signal slower economic growth. He also pointed out that falling yields have been one of the main catalysts for the stock market’s rise this quarter, but a further decline to 3% would mean a “hard landing” for the economy.

David Bailin, chief investment officer and head of investments at Citi Global Wealth, said stocks are ripe for further gains next year as inflation trends decline, the economy remains resilient and earnings rebound – adding to the growing number of investors who are still sitting on the sidelines. , the opportunity cost of investors holding on to cash.