Better-than-expected employment and therefore the threat of a more aggressive Fed cause the indices to fall Wall Street. The opening Dow Jones lost 0.4%, the S&P 500 0.5% and the Nasdaq 0.7%. Sales on government bonds, with the yield of Treasury ten-year rising to 3.25%. Here are five things that can move the markets on today’s market day Thursday 1st September.
1) Better employment than expected. Waiting for payrolls
After yesterday’s ADP estimates, which had allowed us to hypothesize a slowdown for the job market American, today the weekly claims for unemployment benefits have partly mitigated the enthusiasm of those who hope that, with jobs falling, the Fed can retrace its steps on the increase in interest rates. Requests fell by 5,000 units per share 232 thousand, against the 245 thousand provided by the consent. At the same time, the number of ongoing subsidies as of August 20 increased by 26,000 to 1.438 million. Investors’ eyes are now on payroll tomorrow, which will provide a further indication, the one most awaited by the market, on the state of health of the economy.
2) Waiting for indications from the manufacturing sector
Still on the macroeconomic front, the market is waiting for the index Manufacturing ISM in August. In July it was 52.8 points, and now the consensus foresees a slight decrease to 52.6. Expenses are also expected buildings July July, which the consensus sees a monthly decline of 0.1%. Both data will provide indications on economic activity in the country, monitored by investors to try to understand whether the United States is headed for recession or not.
3) An increasingly aggressive Fed
Today in the late evening the words are expected Raphael Bostic, chairman of the Atlanta Federal Reserve. In the past, the central banker has been one of the mildest on the Fed board, hoping for a rate hike of 50 basis points (and not 75) at the September meeting. His words will come after the Cleveland Fed number one yesterday, Loretta Mesterhe reiterated the central bank’s aggressive interest rate stance. “The US Federal Reserve,” he said, “will have to raise interest rates slightly above 4% by the beginning of next year and then keep them there to bring inflation back too high to the 2% target.”
4) China Danger for Nvidia
On the corporate side, Nvidia begins trading down by almost 6%. The global chip giant announced it could lose up to $ 400 million in quarterly sales after the U.S. imposed new licensing requirements for shipments of some of its most advanced semiconductors in China.CopyAMP code.
5) Dollar strengthening again
The dollar remains strong, with the exchange rate between the euro and the greenback falling back below par (0.998) because the Federal Reserve “remains committed to fighting high inflation”, according to the specialist. Swissquote Bank Ipek Ozkardeskaya. The Fed is so determined to contain inflation that “it is willing to accept a slowdown in the economy and the labor market,” says the analyst. It is also important to note, he concludes, “that in times of great stress, such as the one we are experiencing today with the pandemic, war and energy crisis, the dollar becomes the preferred asset of investors”. (All rights reserved)