NEW YORK, New York – U.S. stocks made modest gains on Wednesday, helped by disappointing employment data which triggered a retreat for bond yields and a sell-off in the U.S. dollar.
Private sector employment saw 177,000 jobs added in August and annual pay was up 5.9 percent year-over-year, according to the August ADP National Employment Report. The 377,000 jobs was significantly lower than July’s figure of 371,000, and expectations for 200,000.
“This month’s numbers are consistent with the pace of job creation before the pandemic,” Nela Richardson, chief economist, ADP said in a statement Wednesday. “After two years of exceptional gains tied to the recovery, we’re moving toward more sustainable growth in pay and employment as the economic effects of the pandemic recede.”
Investors and traders on Wall Street took the report in their stride, but were also looking ahead.
“Traders and investors alike want to see ‘follow through’ in today’s market action, helping to confirm that the uptick in market performance is a more viable move as the market heads into September,” Quincy Krosby, chief global strategist at LPL Financial told CNBC Wednesday.
The Standard and Poor’s 500 (^GSPC) closed at 4,514.87, marking an increase of 17.24 points, or 0.38 percent. Trading volume for the index reached 1.795 billion shares.
The Dow Jones Industrial Average (^DJI) also showed a positive trend, closing at 34,890.24, up by 37.57 points, or 0.11 percent. A total of 233.965 million shares were traded on the Dow on Wednesday.
Meanwhile, the NASDAQ Composite (^IXIC) demonstrated a strong performance, gaining 75.55 points, or 0.54 percent, to conclude at 14,019.31. The trading volume for NASDAQ stocks reached 3.906 billion shares, reflecting a robust investor interest in tech-heavy companies.
U.S. Dollar Slides on Foreign Exchange Markets Wednesday as Job Figures disappoint
In late Wednesday trading, the foreign exchange markets showcased a mix of movements among major currency pairs, with a bias towards a weaker dollar following the ADP numbers. Here are the latest forex rates approaching the close:
EUR/USD: The euro (EUR) strengthened against the U.S. dollar (USD), with the exchange rate last at 1.0920. This marked a gain of 0.37 percent, equivalent to an increase of 0.0040.
USD/JPY: The Japanese Yen (JPY), conversely weakened to 146.25. This represented a decline of 0.27 percent, or 0.39.
USD/CAD: The dollar dipped slightly against the Canadian dollar (CAD). The exchange rate settled at 1.3535, reflecting a decrease of 0.12 percent, or a reduction of 0.0016.
GBP/USD: The British pound (GBP) was indemand with sterling rising to 1.2715 Wednesday. This represented an impressive increase of 0.57 percent, equivalent to a rise of 0.0072.
USD/CHF: The Swiss franc (CHF), inched down to 0.8787. This marked a modest slide of 0.05 percent, or 0.0004.
AUD/USD: The Australian dollar (AUD) saw a marginal decline against the U.S. dollar (USD). The exchange rate closed at 0.6478, reflecting a decrease of 0.02 percent, equivalent to a reduction of 0.00015.
NZD/USD: Similarly, the New Zealand Dollar (NZD) edged down against its U.S. counterpart (USD), resulting in an exchange rate of 0.5970. This marked a slight decrease of 0.02 percent.
Global Equity Markets Close with Mixed Performances on Wednesday
In a day marked by mixed performances across international stock markets, investors witnessed a varied tapestry of gains and losses. Here’s a snapshot of the closing world stock market quotes for Wednesday:
In Canada, the S&P/TSX Composite index (^GSPTSE) closed with a 39.91 point increase, at 20,330.32 Wednesday, representing a growth of 0.20 percent. Canadian markets saw 148.867 million shares changing hands during the trading session.
FTSE 100 (^FTSE): The London-based FTSE 100 index concluded the trading day at 7,473.67, up 8.68 points or 0.12 percent.
ESTX 50 PR.EUR (^STOXX50E): Europe’s ESTX 50 PR.EUR index experienced a dip, closing at 4,315.31, down 11.16 points or 0.26 percent.
Euronext 100 Index (^N100): The Euronext 100 Index concluded the trading day at 1,361.81, down 2.52 points or 0.18 percent.
DAX PERFORMANCE-INDEX (^GDAXI): Germany’s DAX PERFORMANCE-INDEX saw a slight dip wednesday, closing at 15,891.93, down 38.95 points or 0.24 percent.
CAC 40 (^FCHI): France’s CAC 40 index finished at 7,364.40, recording a loss of 9.03 points or 0.12 percent.
BEL 20 (^BFX): Belgium’s BEL 20 index recorded a loss of 20.20 points or 0.55 percent, closing at 3,665.36.
MOEX Russia Index (IMOEX.ME): Russia’s MOEX Russia Index dipped slightly, closing at 2,222.51, down 4.14 points or 0.19 percent.
Nikkei 225 (^N225): Japan’s Nikkei 225 index, on the other hand, surged ahead, closing at 32,333.46, with a gain of 106.49 points or 0.33 percent.
HANG SENG INDEX (^HSI): Hong Kong’s HANG SENG INDEX experienced a slight decline Wednesday, closing at 18,482.86, down 1.17 points or 0.01 percent.
SSE Composite Index (000001.SS): China’s SSE Composite Index showed a modest gain, closing at 3,137.14, up 1.25 points or 0.04 percent. The market also saw a substantial trading volume of 4.166 billion shares.
Shenzhen Index (399001.SZ): China’s Shenzhen Index closed at 10,482.50, recording a gain of 27.52 points or 0.26 percent, with a trading volume of 543.133 million shares.
STI Index (^STI): Singapore’s STI Index ended the day at 3,220.22, down 2.87 points or 0.09 percent.
S&P BSE SENSEX (^BSESN): India’s S&P BSE SENSEX index edged up slightly by 11.43 points or 0.02 percent, closing at 65,087.25.
NIFTY 50 (^NSEI): India’s NIFTY 50 index closed Wednesday at 19,347.45, up 4.80 points or 0.02 percent.
IDX COMPOSITE (^JKSE): Indonesia’s IDX COMPOSITE index closed at 6,966.66, up 8.82 points or 0.13 percent.
FTSE Bursa Malaysia KLCI (^KLSE): Malaysia’s FTSE Bursa Malaysia KLCI index concluded the trading day at 1,451.94, down 2.50 points or 0.17 percent.
KOSPI Composite Index (^KS11): South Korea’s KOSPI Composite Index showed strength, closing at 2,561.22, up 9.06 points or 0.35 percent.
TSEC weighted index (^TWII): Taiwan’s TSEC weighted index displayed robust gains on Wednesday, closing at 16,719.82, up 96.17 points or 0.58 percent.
ALL ORDINARIES (^AORD): The Australian ALL ORDINARIES index displayed a strong performance, surging by 90.40 points or 1.22 percent to close at 7,506.80.
S&P/ASX 200 (^AXJO): Australia’s S&P/ASX 200 index stood out as a top performer, surging by 87.20 points or 1.21 percent to close at 7,297.70.
S&P/NZX 50 INDEX GROSS (^NZ50): New Zealand’s S&P/NZX 50 INDEX GROSS saw a slight decrease, closing at 11,521.12, down 7.00 points or 0.06 percent.
Top 40 USD Net TRI Index (^JN0U.JO): The Top 40 USD Net TRI Index recorded a gain of 12.01 points or 0.30 percent Wednesday, closing at 4,027.24.
TA-125 (^TA125.TA): Israel’s TA-125 index mirrored Taiwan’s performance, also surging by 10.83 points or 0.58 percent to close at 1,869.51.
EGX 30 Price Return Index (^CASE30): Egypt’s EGX 30 Price Return Index had a strong day, gaining 188.90 points or 1.01 percent, with a trading volume of 150.626 million.
In summary, global markets experienced a mixed day of trading on Wednesday, with some indices posting gains while others saw marginal losses. Investors continue to monitor economic indicators and geopolitical developments closely as they assess market sentiment and opportunities.
(Photo credit: Big News Network news agency).