Jakarta, CNBC Indonesia – The United States (US) stock market rose at the opening of trading Monday (11/8/2021), following strong October employment data that exceeded expectations.
The Dow Jones Industrial Average rose 145 points (+0.4%) by 08:30 local time (20:30 EDT) and within 30 minutes to 181 points (+0.5%) to 36,508.98 while the S&P 500 grew 10 .1 points (+0.21%) to 4,707.6. The Nasdaq was up 33 points (+0.21%) at 16,004.59.
The market is responding to the decision of the US House of Representatives to pass a US$1 trillion infrastructure budget for US President Joe Biden’s signature. The package, which passed the Senate in August, will provide funding for infrastructure projects in the transportation, utilities, and utilities sectors broadband.
Caterpillar shares soared more than 3% in the opening session after the heavy equipment maker was forecast to gain the most from the package.
Meanwhile, energy stocks received an injection from rising world energy prices after US President Joe Biden stated that he did not anticipate the Organization of the Petroleum Exporting Countries (OPEC) would respond to calls for an accelerated production increase.
Tesla shares dropped 4% after Elon Musk talked about selling his 10% stake in the company he founded in response to the discourse of taxing unrealized profits on the stock. As many as 58% of respondents answered: yes.
Last Friday the main US indexes set new record highs. The Dow Jones rose 203.7 points (nearly 0.6%) for the sixth day in a row. The S&P 500 index rose 0.4% for a seventh day of rally, and the Nasdaq grew 0.2% or scored its 10th consecutive daily rally.
The rally came after October employment data came in better than market expectations with an additional 531,000 new jobs posted last month, according to the Labor Department.
“The economy is clearly gaining some momentum … we expect economic growth to be strong through late 2021 and early 2022,” JPMorgan analyst David Lebovitz told reporters. CNBC International.
The US central bank (Federal Reserve / The Fed) held the US benchmark interest rate (Federal Funds Rate) at 0.25% last week. The world’s strongest central bank has also started reducing the value of asset purchases in the market from the current position of US$ 120 billion/month, at the end of this month.
Investors are monitoring the release of the latest inflation data, namely the producer price index (PPI) and the consumer price index. Economists expect both to still be high in October.
CNBC INDONESIA RESEARCH TEAM
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