© Reuters.
Investing.com – US stocks were volatile in the markets as bond yields returned from multi-year highs after the September private sector wages report came in below expectations.
At 19:20 Riyadh time, the American market indices succeeded in rising after yesterday’s decline, rising by 0.48% to 1.02%, and the Dow Jones Industrial Average by 0.24%.
The shift to the upside echoed positive labor market earnings news on Wednesday in contrast to a higher-than-expected jobs report on Tuesday, which sent Wall Street’s main indexes lower that day as bond yields rose. Returns usually move inversely to prices.
The Dow Jones Industrial Average, which includes 30 stocks, posted its worst performance since March, and the S&P 500 touched its lowest since June. The biggest decline came in the technology-rich Nasdaq index, which fell by 1.9%.
After these losses, it is in annual profits this year. However, the S&P 500 and Nasdaq are still up 10% and 24%, respectively, in 2023, thanks in part to the AI-powered rally in tech stocks earlier in the year.
Dollars and bonds
It is now down 0.24% to $1,836.95 per ounce, while spot gold contracts are down 0.06% to $1,821 per ounce. [ت006%إلى1821دولارًاللأوقية
It fell by 0.33% to 106.370 against a basket of foreign currencies, amid a strong decline in yields after touching historical peaks, and 10-year Treasury bond yields fell by 1.40% to 4.733%. While US Treasury bond yields for two years fell by 1.54% to 5.069%.
The US private sector sector is adding fewer jobs than expected
The U.S. private sector added far fewer jobs than expected in September, according to a report published by payroll processor ADP on Wednesday, showing the slowest pace of growth since January 2021, when private employers shed jobs.
The private sector was expected to have added just 89,000 jobs in September.
The figure for August was revised to show a rise of 180,000 jobs versus the 177,000 jobs initially reported. The sharp decline in September could signal that the labor market in the world’s largest economy is starting to weaken, a trend that could ease pressure on wages, help cool (DFM:) inflation, and give the Federal Reserve more room to step back from tightening monetary policy.
The important monthly non-farm payrolls report will be available at the end of the trading week and is expected to provide a better picture of jobs. It is expected that 163,000 jobs were added in the US sector last month, down from 187,000 in August.
Bond yields rise after reports of special wages
Peak yields on government bonds fell after the private pay numbers, as traders reset their interest rate expectations once again.
By 11:10 EST, yields on 10-year U.S. Treasuries fell 0.06 percentage point to 4.74%, close to their highest level since mid-2007. Yields on 30-year Treasuries fell 0.058 percentage point to 4.87%, but it remained close to the level we last saw before the financial crisis.
The US Dollar Index, which tracks the performance of the US dollar against a basket of other currencies, also fell after being boosted by a rise in yields to levels near their highest level in 11 months.
A look at Wall Street stocks
Cal-Maine shares fall
In corporate news, shares of egg producer Cal-Maine Foods (CALM) fell 6.4% after it reported first-quarter earnings of 2 cents per share versus analysts’ expectations of 33 cents per share.
The company’s revenue was $459.3 million, below expectations of $473.37 million, due to a decrease in the average net price of conventional eggs.
Palantir shares rise
Elsewhere, Palantir (PLTR) shares rose 3% after Bloomberg News reported that the data analysis group is close to securing a contract to revamp the UK’s National Health Service, while Apple (NASDAQ:) shares fell after KeyBank analysts downgraded Capital Markets’ ranking of the iPhone maker.
Decline due to the strength of the US dollar
Oil prices fell on Wednesday as a stronger US dollar threatened to make crude more expensive for buyers using foreign currencies, which could impact demand.
And Russia, two key members of the producing group, decided last month to extend production cuts until the end of the year.
Crude oil is experiencing severe losses, reaching 4.36% downwards, to trade at $85.35 per barrel, while Brent crude oil fell by 4.19% to $87.11 per barrel now at 7:30 Riyadh time.
2023-10-04 20:49:33
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