Global Market Update: Dow Jones declines over 400 points on employment data and rate worries

Global Market Update: Dow Jones declines over 400 points on employment data and rate worries

Major US stocks declined on Tuesday. With the Dow falling to negative territory for the year, US job openings rose higher than anticipated in August, which is yet another indicator of a strong economy, which suggests that interest rates will remain higher for a longer period of time.

The Dow Jones fell 496.25 points which is 1.48 percent up to 32,937.1 The S&P 500 fell 69.39 points (or 1.62 percent, and was at 4,219, and it was the Nasdaq Composite dropped 277.28 points which is 2.08 percent up to 13,030.49.

The market for stocks has lost over 40 percent in value from the beginning of July, following a surge higher throughout the year. Its CBOE volatility index Wall Street’s “fear gauge,” hit its highest since May.

Big Tech stocks were some of the largest weights that were traded. These and other stocks with high growth are considered the largest victims of the high interest rates. Amazon dropped 3.9 percent, Microsoft dropped 3% and Nvidia dropped 2.8 percent.

10-year Treasury yield rose again on Tuesday, rising to 4.80 percent from 4.69% on Monday night and just 0.50 percent at the beginning of the epidemic. The yield climbed to record highs of 16 years due to fears by investors of whether the Fed will keep rates higher for a longer period as job openings unexpectedly grew in August.

The US job openings unexpectedly grew in August, owing to a rise of demand for employees in the business and professional services industry, which suggests an unrelenting labor market that could prompt the Fed to increase interest rates in the coming month.

The number of job openings increased from 690,000 to 9.610 million in the final week of August. This was the highest number in less than two years. The July data were revised upwards to reflect 8.920 million jobs available instead of the earlier reported 8.827 million.

Oil prices rose on the day after plummeting to slash their gains from the end of summer. A barrel of the benchmark US crude gained 41 cents, settling at $89.23 after rising than $70 in the summer. Brent crude, which is the international benchmark, climbed 21 cents, or $90.92 each barrel. OPEC ministers will gather to discuss the world’s markets on Wednesday. The group’s delegates do not expect the panel to suggest any policy changes.

The US dollar initially increased, but it then plummeted quickly against the yen following briefly gaining above the psychological 150 yen mark for the first time since October 2022. This has led some to believe that there is a hint of intervention from the Bank of Japan. Bank of Japan.

Gold prices sank to the seven-month low of Tuesday due to an ebullient dollar and rising bond yields. The likelihood of US interest rates rising for a longer period of time dominated sentiment. Spot gold fell 0.1 percent at $1,825.09 in ounces at 1:149 p.m. (ET) (1749 GMT), after reaching its lowest since March. US gold futures closed 0.3 percent lower to $1,841.50 for an ounce.

In Asian markets, Hong Kong’s Hang Seng dropped more than 3% as investors sold property shares. In Hong Kong, the Hang Seng was down 3 percent at 17,278.37. In mainland China as well as South Korea remained closed for the holiday season. Japan’s Nikkei 225 index dropped 1.5 percent to 31,282.32 while the S&P/ASX 200 index in Australia sank 1.1 percent to 6,953.60. India’s Sensex decreased 0.7 percent to 65,408.18 the SET of Bangkok was down 1.5 percent and Taiwan’s Taiex dropped 0.3 0.3%.


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