The Dow Jones Industrial Average closed lower on Tuesday (Nov. 1) after the US said job openings increased in September. This shows that the US labor market remains strong. And it may cause the US Federal Reserve (Fed) to continue to accelerate interest rate hikes.
The Dow Jones Industrial Average closed at 32,653.20 points, down 79.75 points, or -0.24%, the S&P500 closed at 3,856.10 points, down 15.88 points, or -0.41%, and the Nasdaq index closed at 10,890.85 points, or -973 points, to down 0.89%.
The US Department of Labor’s Bureau of Labor Statistics released the Job Openings and Labor Turnover Rate (JOLTS) survey. A measure of labor market demand rose by 437,000 jobs to 10.7 million in September. Contrary to analysts’ expectations, it fell to 9.85 million jobs.
The JOLTS figure is the Fed’s comment. It is seen as a measure of labor market tightness. This is a factor in the Fed’s monetary policy and interest rates.
Anthony Saglimbeen, analyst at Ameriprice Michigan Financial said investors recognize that the Fed wants to slow down the labor market and jobs. Reduce the heat of the economy and drag inflation down. But the latest labor data available shows that the labor market is still very strong. And it may give the Fed a reason to keep raising interest rates.
Six of the 11 stocks in the S&P 500 closed in negative territory, led by technology stocks that are more sensitive to interest rates. Amazon was down 5.52%, Microsoft was down 1.71 percent, Apple was down 1.75 percent, and Alphabet was down 4.27 percent.
However, energy stocks rose after WTI oil prices rose more than 2 percent, with Exxon Mobil up 0.99 percent, Halliburton up 0.21% and Conoco Phillips up 1.34 percent.
Pfizer shares jumped 3.06 percent after the company reported revenue of $22.6 billion in the third quarter, beating analysts’ estimates of $210 billion. This was triggered by the sale of Paxlovid, a drug to treat COVID-19.
Shares of Uber Technologies jumped 11.97% after the company raised its earnings forecast for the fourth quarter, which boosted Uber shares, with Lyft up 3.48% and DoorDash shares up 3.61%.
Shares of Chinese companies listed on the New York Stock Exchange rose on hopes that China could reopen the country. After the news that China has set up a committee to discuss the relaxation of coronavirus measures no day, with JD.Com shares up 3.08 percent, Alibaba Group Holding up 3.59%.
Investors are keeping an eye on the outcome of the Fed’s monetary policy meeting on Wednesday, November 2, US time. or in the morning of Thursday, November 3, Thai time while the market expects the Fed to raise interest rates by 0.75% at this meeting. and will raise interest rates to just 0.50% at the December meeting
