(New York) The New York Stock Exchange is moving sharply lower on Thursday after news of strong private sector hiring could bolster the Fed’s tight monetary policy, as official U.S. jobs numbers for June are due Friday. .
The Dow Jones Index fell 1.06%, the NASDAQ fell 1.35% and the broader S
Two-year bond yields climbed to their highest level since 2006 at 5.08%.
The day before, the Dow Jones index fell 0.38% to 34,288.64 points, the technology-heavy NASDAQ fell 0.18% to 13,791.65 points and the S
Job creations in the private sector in June in the United States, announced just before the opening of the market by the ADP/Standford Lab survey, surprised by their strength, immediately weighing down the indices.
What is good news for jobs is not so good for investors who fear that the US central bank will be inclined to raise rates even more to calm this overheating of hiring which can fuel inflation.
At 497,000, job creations in the private sector are twice as numerous as expected. Wage growth has slowed, but still stands at 6.4% year-on-year, which the Fed sees as a factor of inflation.
Meanwhile, weekly jobless claims rose more than expected to 248,000 from 236,000 the week before.
The data comes ahead of the release of the official jobs report on Friday. Analysts forecast 220,000 new hires against 339,000 in May with an unemployment rate of 3.6% against 3.7% the month before.
Further chilling investors, Fed official Lorie Logan said on Thursday that the central Federal Reserve should continue its rate hikes.
Given the economic environment, “the Monetary Committee must pursue a more restrictive policy in order to bring inflation back to target in a sustainable and timely manner,” Ms. Logan said, stressing that she was on the side of those who were supportive of another hike in June as the Fed finally decided to take a break.
On the bond market, in addition to two-year yields, the most sensitive to the Fed rate hike, ten-year yields also climbed sharply, exceeding the 4% mark at 4.03% around 9:45 a.m. (CET time). ballast).
On another level, the trade deficit for the month of May narrowed significantly (-7.3%) to $69 billion, reflecting a decline in exports, but especially imports. Over one year, the US trade deficit remains on a sharp decline, by 22.8%.
“The key takeaway from the report is that the drop in exports and imports is emblematic of a slowdown in global demand that one would expect in an environment where many of the world’s major central banks are raising rates,” said summary Patrick O’Hare of Briefing.com.
On the value side, Meta gleaned 0.42% to 295.67 dollars as Facebook’s parent company launches a new social network, Threads, which aims to rival Twitter.
The application, launched Wednesday at 7 p.m. EST in 100 countries and which currently works without advertising, is the biggest challenge to Twitter, owned by Elon Musk, already weakened by a series of adventures . From its first hours, the network had already gleaned 10 million subscribers.
On the NASDAQ, however, most of the other big tech names were largely in the red, from Alphabet (-2.02%) to Amazon (-1.89%) to Tesla (-2.82%). ) and Netflix (-2.47%).
Data analytics specialist Palantir fell 6.50% as the high level of the action recently swelled by market enthusiasm for artificial intelligence sparking profit taking.
The Moderna laboratory, highly sought after this week after the announcement of investments in China, was clearly losing ground (-4.27%).
Banks also fell like Bank of America (-2.24%), Citigroup (-2.67%) or JPMorgan (-1.36%).