Dow Jones plunges more than 270 points! Strong US employment figures fuel speculation about a Fed interest rate hike.
U.S. stock markets closed lower on Friday after stronger-than-expected August employment figures fueled investor speculation that the Federal Reserve (Fed) might raise interest rates at its September meeting. European stock markets moved into positive territory, while oil prices continued to rise amid tensions between the U.S. and Iran. Gold prices fell more than 2% after markets increased betting on a Fed rate hike.
US stock markets fall! Strong employment data weighs on the market, amid anticipation of a Fed interest rate hike.
U.S. stock markets closed lower on Friday (September 4, 2569) after August's non-farm payroll data showed an increase of 162,000 jobs, higher than economists' expectations of only 53,000. The unemployment rate remained unchanged at 4.1%, fueling market concerns that the Fed might raise interest rates at its September 15-16 meeting.
U.S. government bond yields rose following the release of data, with the 2-year bond yield reaching its highest level since January 2568, as investors increased the likelihood of a Fed interest rate hike. Fed funds futures reflected a probability of around 58%, up from 49.4% the previous day.
- Dow Jones Industrial Average Closed at 53,414.25 points, down 271.86 points (-0.51%)
- S&P 500 Index Closed at 7,718.60 points, down 29.11 points (-0.38%)
- Nasdaq Composite Index Closed at 26,506.99 points, down 77.07 points (-0.29%)
European stock markets closed slightly higher as investors awaited the direction of interest rates.
European stock markets closed higher on Friday, with the STOXX 600 index boosted by gains in certain sectors, as investors assessed interest rate prospects and monitored key economic data from the United States that could influence the direction of monetary policy at central banks worldwide.
- STOXX 600 Index Closed at 649.88 points, up 0.78 points (+0.12%)
- DAX German stock market index Closed at 26,046.40 points, up 43.08 points (+0.17%)
- CAC 40 Index of the French stock market Closed at 8,278.77 points, down 7.63 points (-0.09%)
The UK stock market remained stable as investors assessed the global economic outlook.
The London stock market was virtually unchanged on Friday as investors assessed the impact of stronger-than-expected US employment data, which increased the likelihood of a Fed interest rate hike. Meanwhile, markets were also watching for inflation risks and the global economic outlook.
- FTSE 100 Index UK Stock Market Closed at 10,831.09 points, down 0.43 points (0.00%)
Oil prices surge! US-Iran clash pushes oil prices up more than 7% this week.
Crude oil prices rose on Friday, climbing more than 7% this week, after the U.S. and Iran resumed military attacks. Meanwhile, diesel prices in the U.S. hit a record high amid concerns about energy supply disruptions.
The market is also watching the situation in the Strait of Hormuz, after initial data indicated that only four commodity ships passed through the strait on Thursday, far below the 10-day average of around 15. Analysts warn that a prolonged conflict could increase the risk premium in oil prices.
- WTI crude oil price (October delivery) It closed at $91.48 per barrel, up $0.18 or 0.20%, and up nearly 10% over the week.
- Brent crude oil price (November delivery) It closed at $96.28 per barrel, up $0.76 or 0.80%, and up nearly 8% over the week.
Gold prices plunged more than 2%! Strong employment data fueled speculation about a Fed interest rate hike.
Global gold prices fell sharply on Friday, dropping more than 2%, after stronger-than-expected U.S. employment data fueled investor speculation that the Fed might raise interest rates this month. This reduced the attractiveness of gold, a non-interest-bearing asset.
The gold market remains under pressure from a stronger dollar, as investors focus on next week's U.S. inflation data, particularly the Consumer Price Index (CPI) and Producer Price Index (PPI), which could be a key factor in the Fed's interest rate direction.
- Spot Gold Price Closed at $4,376.04/ounce, down 2.2%.
- Gold price on Comex market (December delivery) Closed at $4,428.80/ounce, down 2.4%.
The dollar strengthened against strong job growth before slowing down in anticipation of inflation data.
The dollar index rose on Friday after better-than-expected U.S. employment data boosted investor expectations that the Fed might raise interest rates at its September meeting. However, the dollar later pared its gains as markets awaited U.S. inflation data next week.
- Dollar Index Closed at 99.10 points, up 0.13%
- Euro/Dollar Closed at $1.1616, down 0.0008 (-0.07%).
- Dollar/Yen Closed at 155.72 yen, down 0.06 (-0.04%).
- Pound/Dollar It closed at $1.3525, unchanged from the previous day.
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