US Markets, 6 Oct: Dow Jones, S&P 500, & Nasdaq Bounced Back from Early Plunge
US Markets LIVE, 6 Oct 2023: The US stock market indexes opened lower on Friday, as the US Treasury yields jumped after the much-awaited job report came stronger than expected.
Dow Jones opened lower by 78.87 points at the 33040.70 level, while the S&P 500 made a negative opening of 23.4 points at the 4234.79 level. The tech-heavy Nasdaq Composite index also made a lower opening of 92.15 points at the 13127.68 level.
US Markets Live Updates Today
At 12.05 p.m EDT, The US markets pared early losses and are trading higher. Dow Jones turned positive and is trading higher by 305.54 points or 0.92 percent at the 33425.11 level while the S&P 500 is trading up by 41.79 points or 0.98 percent at 4299.98 levels. The tech-heavy Nasdaq Composite index erased all losses and is trading higher by 167 points or 1.26 percent at 13386.83 levels.
US Market News
The US stock market sentiments were subdued in the early trade, as the 10-year Treasury yield jumped 15 basis points on the back of stronger-than-expected job data. The benchmark 10-year Treasury yield is trading at 4.81% after hitting a high of 4.86%, the yield was settled at 4.708% in the previous close on Thursday.
The spike in Treasury yield is due to last month’s job data, the Labor Department showed that the US economy added 336,000 jobs, which is much ahead of economist expectations of 170,000 jobs.
The unexpected job growth raised concern among investors that the Fed will keep the interest rate higher for a longer tenure and increase the chances of another rate hike by the year-end.
However, the downside of the market was capped and the indexes bounced back, as there was some positive news on the inflation front in the report. The average hourly earnings rose less than expected last month. The report showed the unemployment rate was unchanged at 3.8%, slightly above the expectation of 3.7%.
Stocks in News Today
The utility sector which is sensitive to high rates, slightly recovered from the day’s low and is currently down 1.30%, AES is down 5%, while Dominion Energy and Sempra are trading lower by 1.9% and 1.30%.
The share of ExxonMobil is currently trading lower by 2.8%, as the company is in talks to buy Pioneer Natural Resources, the largest crude producer in Texas. The share price of Pioneer gained 9.8% on the news.
Tesla shares are trading lower by 2.4%, as the company cut the price of some Model 3 and Model Y versions in the US. The move came after the company reported third-quarter deliveries that missed market expectations.
Philips shares trading lower by 7.3% after the US Food and Drug Administration said the Dutch health tech company’s handling of its 2021 sleep apnea device recall was not adequate, it requires additional testing.
Crude Oil Prices
The crude oil prices were trading slightly lower after the monthly job report but later bounced back. Both the oil benchmarks are heading for a steepest weekly decline for months on concerns of global economic slowdown and higher borrowing costs. The official data from the US during the week showed huge stockpiles of gasoline, indicating a decline in gasoline demand and hit the sentiments.
The US WTI crude is hovering near the flatline, up by 0.43% at $82.64 per barrel while London-based Brent crude oil is trading slightly higher by 0.51% at $84.50 per barrel.
US Markets at Close
The US markets bounced back after an early plunge and closed higher on Friday. Investors shrugged off rising Treasury yields after the higher-than-expected job reports, as average hourly wages rose less than expected and the unemployment rate came slightly higher than expected. The key US market indexes, Dow Jones and S&P 500 gained 0.87 percent and 1.18 percent respectively, while the Nasdaq jumped 1.60 percent on Friday.
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