New York Stock Exchange Closes Higher


Lerato Khumalo

The New York Stock Exchange rose on the last trading day of the week.

The New York Stock Exchange ended the last trading day of the week higher after employment data came in above expectations.

At the close, the Dow Jones index increased by 0.17 percent to 39,375.87 points.

The S&P 500 index rose 0.54 percent to 5,567.19 points and the Nasdaq index gained 0.9 percent to 18,352.76 points. Both indexes repeated their closing records.

Markets in the USA, which were closed yesterday due to the July 4 Independence Day holiday, showed a positive trend on the last trading day of the week.

Non-agricultural employment in the country increased by 206,000 in June, exceeding expectations. The unemployment rate also increased by 0.1 points to 4.1 percent, reaching its highest level since November 2021.

Average hourly earnings, which are closely monitored by the US Federal Reserve (Fed), increased by 0.3 percent to $35, in line with expectations.

Analysts said that although employment rose more than expected in June, downward revisions to data for April and May provided further evidence that the U.S. labor market is softening.

Pointing to the slowdown in wage growth and the increase in the unemployment rate, analysts noted that expectations that the Fed could start cutting interest rates in September have strengthened.

Analysts said investors will also evaluate the inflation data to be announced next week.

Following the release of the data, the US 10-year Treasury bond interest rate decreased by approximately 6 basis points to 4.28 percent.

According to money market pricing, the probability that the Fed will cut interest rates in September is 73 percent.

On the other hand, the Fed, which published the July issue of its semi-annual Monetary Policy Report prepared twice a year for the US Congress, stated that it needed more confidence before starting to cut interest rates.

The report noted that inflation eased significantly last year and has made modest progress this year, but it remains above the Federal Open Market Committee’s (FOMC) 2 percent target.

“The FOMC does not expect it to be appropriate to lower the target range until it has greater confidence that inflation is moving sustainably toward 2%,” the report said.

In addition, the increase in shares of US electric car manufacturer Tesla, whose vehicle sales in the second quarter exceeded expectations, continued. The company’s shares, which gained 2 percent today, are notable for increasing by more than 25 percent this week.