US Markets, 3rd Oct: Dow Jones in Freefall, Nasdaq Composite in Turmoil
US Markets LIVE, 3 Oct 2023: The US stock market indexes opened lower on Tuesday, as Treasury yields climbed to a multiyear high. Dow Jones opened lower by 114.51 points at the 33318.84 level, while the S&P 500 made a negative opening of 18.64 points at the 4269.74 level. The tech-heavy Nasdaq Composite index also made a lower opening of 78.09 points at the 13229.68 level.
US Markets Live Today
At 12 PM EDT, The US stock market indexes extended early losses and are trading in a deep cut. Dow Jones is trading lower by 417.92 points or 1.25 percent at the 33015.43 level while the S&P 500 is trading negative by 62.20 points or 1.45 percent at 4226.19 levels. The tech-heavy Nasdaq Composite extended its early losses and is trading sharply lower by 232.80 points or 1.75 percent at 13074.97 levels.
US Market News
After last week’s shutdown anxiety, investors are now fretting about the possibility of higher interest rates for longer tenure. This pushed the 10-year Treasury yields to above 4.76%, at a 16-year high level.
Investors are worried that the higher interest rate for a long period could tip the economy into recession. The prospect of higher borrowing costs for the long period dented investors appetite for riskier assets like stocks.
The US stock market indexes extended their losses after the August Job Opening and Labor Turnover (JOLT) data. The data showed 9.6 million Job openings in August, up from a revised total of 8.9 million in July. This indicates a sign of strong labor markets despite the Federal Reserve’s efforts to slow the economy.
Investors are now looking ahead to the ADP nonfarm employment report and last month’s payroll report which are due on 4th and 6th October this week. The earning season will be back in focus from the next week onwards.
Stock in News Today
The Seasoning and spice manufacturer McCormick & Company fell sharply about 8% after announcing its quarter earnings.
The shares of Warner Music Group gained about 2% after UBS upgraded the stock to buy from a neutral rating, saying the stock is at an attractive valuation after an 11% yearly selloff.
Netflix share is gaining marginally higher by 0.14% after the report that the company plans to raise the price of its ad-free services.
The shares of Point Biopharma gained 85% after Eli Lilly announced that it would acquire the cancer therapy maker for roughly $1.4 billion.
Crude Oil Prices
The crude oil prices are trading higher on Tuesday after falling sharply to a three-week low in the previous session. The expectation of higher interest rates for longer and one more rate hike in the current year means higher borrowing costs for the oil importers and this triggered profit-taking in oil. The strong dollar also makes oil more expensive for holders of other currencies further dampening the oil demand.
The US WTI crude is trading higher by 1.23% at $89.92 per barrel while London-based Brent crude oil is trading lower by 0.69% at $91.34 per barrel.
US Markets at Close
The US stock market indexes closed sharply lower on Tuesday, as JOLT’s data showed strength in labor markets, raising concern about higher Fed interest rates and pushing the Treasury yields to a multi-year high.
The key US stock market indexes Dow Jones and S&P 500 declined 1.29 percent and 1.39 percent respectively. The tech shares also fell sharply after gaining in the previous session, the Nasdaq index was down by 1.87 percent on Tuesday.
Also, read US Markets, Oct 2: Dow Dips and Nasdaq Surges Amidst Rising Treasury Yields
Global Stock Market: Weekly News & Analysis (25-29 Sept 2023)
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