Mixed opening in the New York Stock Exchange... Tech stocks rise vs weak employment indicators

Source: TokenPost Original Title: US New York Stock Market Opens Mixed… Tech Stocks Rise vs Weak Employment Data Original Link: The US stock market in New York opened on January 7 (local time) with a mixed trend based on economic indicator results. Amid conflicting signals from employment indicators and the service sector economy, technology stocks showed an upward trend, while the Dow Jones Industrial Average, centered on large industrial stocks, declined.

As of 10:28 a.m. that morning, the Dow Jones Industrial Average on the New York Stock Exchange fell by 197.27 points (0.40%) to 49,264.81. The S&P 500 index decreased by 0.01% to 6,944.25, while the tech-focused Nasdaq index rose by 0.28% to 23,611.98. The major indices hit new highs the previous day due to expectations for the artificial intelligence industry, but on that day, with the release of economic indicators, the indices moved in different directions.

The Institute for Supply Management (ISM) released the December Services PMI at 54.4, exceeding market expectations of 52.3. This figure is the highest since last year, indicating active performance in the service sector economy. PMI measures economic expansion and contraction with a baseline of 50; a reading above 54 is interpreted as a sign that businesses are optimistic about economic prospects.

Conversely, employment-related indicators did not meet market expectations. According to the ADP National Employment Report, private sector employment increased by 41,000 in December, falling short of the expected 47,000 increase. Additionally, the US Department of Labor’s November Job Openings and Labor Turnover Survey (JOLTS) showed 7.1 million job openings, below the market expectation of 7.64 million. This suggests that companies are relatively cautious about hiring new staff.

From industry trends, technology stocks and healthcare-related shares led the rise, while utilities and financial stocks performed poorly. Specifically, refining company Valero Energy rose nearly 5% amid expectations of easing sanctions on Venezuela, GameStop increased over 4% following news of CEO compensation plans, and Mobileye, a humanoid robot acquisition target, also rose more than 5%.

On the other hand, European stock markets generally declined. The Euro Stoxx 50, a representative index of the Eurozone, fell by 0.25%, the UK FTSE 100 dropped by 0.82%, and France’s CAC 40 declined by 0.22%, while Germany’s DAX rose by 0.73%, showing an opposite trend. International oil prices also declined, with February-delivered West Texas Intermediate (WTI) crude oil falling to $56.36 per barrel, down 1.35% from the previous trading day.

This trend is expected to become clearer with the release of the US December non-farm payroll data on the 9th. Market participants are closely analyzing how employment indicators will influence the Federal Reserve’s interest rate policy changes and seeking further upward momentum by examining key indicators.