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The New York Stock Market Leading Index started on Sept. 25 due to a breathtaking short-term surge and deteriorating US unemployment indicators.
At 9:35 am (Eastern Time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) was trading at 29,940.28, down 105.96 points (0.35%) from the battlefield.
The Standard & Poor’s (S&P) 500 index traded at 3,628.07, down 7.34 points (0.20%) from the battlefield, while the technology-oriented NASDAQ index traded at 12,061 , 79, up 25.01 points (0.21%).
The market is watching major economic indicators including US unemployment insurance and Federal Open Markets Commission (FOMC) minutes.
With the Dow index climbing above the 30,000 mark for the first time in history the previous day, the stock market showed a strong uptrend, driven by the recent economic cycle.
The fact that a new coronavirus vaccine (Corona 19) will soon be available has given the stock market a boost.
When a vaccine is released, there is great hope that economic activity will return to normal next year.
Also, the fact that US President-elect Joe Biden initiated the power transfer process to reduce political uncertainty.
Former Federal Reserve Chairman Janet Yellen’s next finance minister was a factor underpinning investment sentiment.
However, on this day, the sentiment of anticipation due to the short-term surge is somewhat dominant.
The lack of unemployment indicators is also a burden, while blockade measures have been strengthened in many parts of the country due to the re-proliferation of the new coronavirus infection (Corona 19).
The Ministry of Labor announced last week that the number of unemployment compensation claims increased by 30,000 from the previous week to 778,000 (seasonal adjustment).
The number of unemployment insurance applicants has increased in the past two consecutive weeks, surpassing the market estimate of 733,000 compiled by the Wall Street Journal.
Concerns have increased that the blockade will hit the labor market again.
Other economic indicators were mixed.
The preliminary US gross domestic product (GDP) growth rate for the third quarter was 33.1% yoy, in line with the latest news and market forecasts announced earlier.
The Ministry of Commerce announced that the trend of orders for durable goods in October increased by 1.3% compared to the previous month.
Compared to the 2.1% increase in September, the increase was slightly reduced, but exceeded the market forecast by 0.6%.
Orders for non-defense capital goods, excluding aircraft, which is an investment indicator for companies, rose 0.7% on a monthly basis.
The increase was 1.9% in September and 2.4% in August.
After the opening, other key indicators are also awaited, such as personal consumption expenditure (PCE) and personal income in October and the final value of the Michigan Consumer Attitude Index in November.
The announcement of the indicators focused before the Thanksgiving holiday the next day.
The Fed’s November FOMC minutes will also be released in the afternoon.
Investors are watching whether the minutes reveal any signs of changes in bond buying policies, such as an extended maturity.
New York stock market experts have diagnosed that overall investment sentiment is in good shape, but uncertainty is still there.
Shima Sha, chief strategist at Principal Global Investor, said: “Compared to a few weeks ago, we are clearly in a more positive position.”
“We are trying to find a balance between the short-term outlook after Corona 19 in the winter and the more optimistic medium-term outlook driven by the post-vaccine economic recovery,” he added. “But there are uncertainties in the medium-term prospects”.
Equity markets in major European countries are also weak.
The pan-European Stoxx 600 index fell 0.25%.
International oil prices have risen.
The price of West Texas crude oil (WTI) in January was up 1.54% to $ 45.60, up 1.54% from the previous trading day, while Brent crude was up 1.54% from the previous trading day. 1.11% to $ 48.39.
/ news yunhap
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