[New York Stock Market] All Indices Rise as Weak Employment Data Dims Rate Hike Expectations

Non-Farm Payrolls in June Fall Far Short of Expectations
Yield on 2-Year U.S. Treasury Note Also Declines

As the non-farm employment indicators fell short of expectations, weakening hopes for an interest rate hike, all three major U.S. stock indices rose simultaneously on July 2 (local time).

As of 10:23 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was up 426.62 points (0.82%) from the previous trading day at 52,731.86. The S&P 500 Index, which focuses on large-cap stocks, increased by 43.29 points (0.58%) to 7,526.52, while the technology-heavy Nasdaq Index rose by 115.27 points (0.44%) to 26,155.30.

The stock market was buoyed by the non-farm employment data serving as a positive catalyst. The U.S. Bureau of Labor Statistics announced that non-farm payrolls in June increased by 57,000 compared to the previous month. This figure is significantly lower than the expert forecast of 115,000, according to Dow Jones. The unemployment rate was 4.2%, below the expert prediction of 4.3%.

The yield on the 2-year U.S. Treasury note at this time stood at 4.131%, down 33 basis points (1bp = 0.01 percentage points) from the previous session. CNBC reported that yields fell amid growing expectations that the Federal Reserve will hold off on raising interest rates under these circumstances.

Bradford Smith, portfolio manager at Janus Henderson Investors, commented, "We are in the process of understanding how the response mechanism will be shaped under Fed Chairman Kevin Warsh." He added, "This money supply announcement somewhat eases the Fed's pressure to increase the money supply in the short term to counter inflation."

He further explained, "Chairman Warsh mentioned during his first press conference that employment data only becomes meaningful after the third revision, by which point it is an 'echo of history.' If the inflation rate, driven by rising oil prices, eases and employment indicators remain somewhat sluggish, the Fed is highly likely to keep rates unchanged at least until the next meeting."

In the semiconductor sector, the VanEck Semiconductor ETF is down 2.05%, AMD is down 3.23%, Intel is down 2.04%, Nvidia is down 0.44%, and Micron is down 2.19%. On the other hand, TSMC is up 0.96% and Microsoft is up 1.38%.

In the international oil market, West Texas Intermediate (WTI) crude oil on the New York Mercantile Exchange is down 1.47% from the previous day at $67.57 per barrel. Brent crude on the ICE Futures Exchange is down 1.22% from the previous session, trading at $70.70 per barrel.

This content was produced with the assistance of AI translation services.