NEW YORK (dpa-AFX) – The recent recovery on the US stock markets was over again on Thursday. The leading index Dow Jones Industrial (Dow Jones 30 Industrial) fell by 0.13 percent to 33,086.79 points in early trading. The market-wide S&P 500 lost 0.45 percent to 4244.41 points. The technology-heavy NASDAQ 100 fell by 0.93 percent to 14,639.18 points.
It remains in view US labor market. After unexpectedly weak data from the private service provider ADP had provided a boost in the middle of the week, weekly initial applications for unemployment benefits rose slightly less than expected. The most attention is paid to the US government’s official labor market report, which will be published on Friday for the month of September and is of particular importance for the US Federal Reserve’s further monetary policy approach.
If the job market remains robust and wages rise, this could fuel inflation, which could lead the Fed to consider further interest rate hikes. However, if the labor market shows cracks, as many market participants hope, the interest rate pause could be extended. This would take pressure off yields on the bond market, which could make equity investments appear somewhat more attractive again. According to one trader, next week’s jobs data, along with inflation figures, will determine whether the yield on 10-year Treasury securities will rise toward 5 percent or fall toward 4.5 percent.
The shares of the electric car manufacturer Rivian (Rivian Automotive) were particularly noticeable on the stock market on Thursday, with price losses of a good 17 percent. The Tesla competitor had presented preliminary sales figures for the third quarter and also announced a convertible bond with a volume of $1.5 billion. Such a step is generally negatively received by stock market investors, as a conversion into shares tends to dilute the share of the existing shareholders.
Clorox stocks also fell by 8.4 percent after the household cleaning manufacturer published preliminary figures for the first quarter and provided an interim update on current business developments following the cyber attack.
In the wake of further falling oil prices, ExxonMobil in particular remained under pressure in the oil sector with a loss of 1.5 percent. The group had also given an initial indication of the third quarter, which according to JPMorgan analyst John Royall should be in line with expectations./ajx/he