American shares legalized the fourth trading session, when the Dow Jones sent a shock and closed above the 52,900 point mark for the first time, while the S&P 500 remained unchanged and the Nasdaq Composite weakened. Markets reacted mainly to weak blue-chip data from the American labor market, which showed a strong creation of new jobs, which was not expected. The unemployment rate fell slightly, which sent expectations that the Fed would not raise rates at the fifth meeting. US bond yields fell slightly in response to the data. At the same time, the capital outflow from the semiconductor sector continued on the markets, which weakened the impact. On the contrary, it is not negligible that the investor transferred capital to defensive sectors, such as consumption and energy. For the whole shortened week, mainly the American indices posted gains. Find out more in the following link. In the shortened trading week due to the Independence Day holiday in the USA, the main American indices did well compared to the previous week, which ended in a shift. The Dow Jones index rose by 2%, the Nasdaq technology index added 2.1% to its values and the S&P 500 index rose by 1.7%. Conversely, the Russell 2000 index, which groups companies with a small thorn capitalization, the so-called small-cap, had a shortened trading week with a decrease of 0.46%. therefore, the trading quarter on the American stock markets ended unevenly. The best performer was the Dow Jones index, which added 1.14% to its values and reached its new all-time high of 52,899.24 points. In contrast, the S&P 500 index ended the fourth session practically unchanged with a negligible loss of 0.01% and ended the trading week at 7,478.66 points, while the technological Nasdaq Composite weakened by 0.8% to end at 25,832.67 points. Growth on the market was supported by companies from the healthcare sector, public services and the so-called Materials sector. Even after that, the relatively significant outflow of capital from the semiconductor sector continued. Companies such as KLA (-11.42%), Micron Technology (-5.49%) and Nvidia (-1.39%) lost significantly. Shares of the Tesla company fell by as much as 7.49%, which represented their largest one-day decline for the year. On the contrary, part of the food market was transferred to other industries. So, for example, Walmart (+2.78%) and Apple (+4.84%) were given. The trading session closed with the strongest quarterly growth in US stocks in the last six years. Investors’ attention was initially focused on the earnings from the American labor market. Outside of agriculture, only 57,000 new jobs were created in the US in June, while the overall market accounted for 114,000 new jobs. After the May revision, the US economy created 129,000 new jobs. The unemployment rate currently fell from 4.3% to 4.2%, and the average number of new jobs in the US was 111,000. So how did the weak data from the US labor market affect the financial markets? Weak employment growth therefore led investors to believe that the US Fed will not have to raise interest rates in the near future. Consequently, the weakening of the US dollar and the decrease in the supply of short-term government bonds corresponded to this. After the publication of data from the American market, these investors began to see more of the thesis that the Fed will not raise rates at its closest FOMC meeting of the year. The yield on ten-year US government bonds fell slightly to 4.469%. The technology sector in particular came under pressure. The shares of the semiconductor manufacturer weakened significantly, but the Tesla company also weakened more noticeably. The Philadelphia Semiconductor Index, which on Tuesday closed its best ever quarter with a profit of 87.8%, but in the interim and the company subsequently lost more than 11%. The decline was therefore felt by five technological companies, industrial enterprises, but also by the consumer sector. The largest increase among companies included in the Dow Jones index was recorded by Apple, whose shares rose by 4.84%, i.e. by 14.25 points to 308.63 dollars. McDonald’s also fared better, rising by 4.07% or 10.96 points to $280.39 per share, and Walt Disney Company’s shares closed up by 3.91% or 3.74 points to end at $99.45. The worst performance in the Dow Jones was shown by Cisco Systems, which lost 3.70% or 4.33 points from its value to end at $112.68. Followed by the traditional manufacturer of industrial machines and accessories, Caterpillar, which lost 2.83%, or 28.08 points, to end at $963.34. In the S&P 500 index, the company Genuine Parts did the most impressively, posting a very impressive 12.92% to $132.57. Shares of the pharmaceutical company Moderna added 10.01% or $7.26 to their value by the end of the last trading week and closed at $79.76, reaching a new 52-week high during the day. The New York Stock Exchange (NYSE) was in a positive mood. 16 shares rose for every 14 that weakened, while 101 titles closed unchanged. On the Nasdaq index, however, the situation was practically the opposite, as 1,855 companies recorded declines, 1,554 titles recorded growth, and 158 titles left the trading floor unchanged. At the end of the last trading week, the VIX volatility index decreased by 2.71% to 16.14, which indicates investor nervousness. And how did other assets (not) fare in comparison to gold? On the commodity markets, the price of the August futures contract for gold increased by 1.32% or by $53.92 at the end of the last trading week at $4,136.32 per troy ounce. The August futures contract for American WTI crude oil fell by 0.13% or $0.09 at the end of the last trading week to $68.49 per barrel of oil. On the other hand, Zij’s contract for North Moscow Brent oil rose slightly by the end of the last trading week, by 0.04% or 0.03 dollars to end at 71.60 dollars per barrel of black gold. On the currency market, the euro and the US dollar rose by 0.49% to 1.14 EUR/USD. The USD/JPY exchange rate fell by 0.91% to 161.08 after the quarter ended, and futures on the US dollar closed with a loss of 0.52% to 100.63. Bitcoin was trading around $62,700 per BTC on Sunday around 12:00 PM (SEL).
Petr pirit has been dealing with current developments not only in financial markets for more than nine years. In the field of analytical activities, the company Bidli specializes in the real estate and mortgage market, energy and investments. He also deals with stock and commodity markets and monetary policy. Regular articles and analyzes are published on these topics and branches. He then worked for several years at one of several large brokerage companies. It was precisely at the birth of yesterday’s economic ideas and news.
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