Wall Street rallied again on Thursday’s trading (08/08/24) on the back of better-than-expected labor market data, easing fears of a US recession. The Dow Jones Industrial Average rose 683 points, or 1.8%, the S&P 500 appreciated 2.3%, and the NASDAQ Composite led the way with a 2.9% surge.
The US government sold USD 42 billion worth of 10-year government bonds on Wednesday at a higher yield than expected as demand declined. The bonds gave a 3.960% yield, 3.1 bps above the expected yield, or the at-issue rate of 3.929%, but below the highest 4.276% yield seen in the previous auction.
Wall Street’s major indexes closed in negative territory again, after the S&P 500 reversed early session gains as a slump in Super Micro Computer’s share price pressured other chip stocks and weighed on the broader market.
US central bank policymakers on Monday rejected the notion that weaker-than-expected July jobs data indicated the US economy is falling into recession, although it must be acknowledged there is an economic slowdown.
World stock markets recovered on Tuesday trading (06/08/24) after the previous day’s sell-off, while US Treasury yields rose and the US Dollar strengthened slightly as investors moved back into riskier assets and comments from the US central bank eased recession fears.
The CBOE Volatility Index, known as Wall Street’s fear gauge, recorded its highest intraday spike before ending the day at 38.57 points for its highest close since October 2020.
Global stock markets were hit by heavy losses worldwide on Monday as Wall Street added to its string of market collapses (which was started by Japan’s Nikkei) by plummeting 1,033.99 points / -2.60% to 38,703.27, while the S&P 500 lost 3.00%, and the Nasdaq Composite shed 3.43%, to 16,200.08.
GOODBYE SOFT LANDING, HELLO EMERGENCY LANDING
Disappointing US employment data on Friday fueled fears of a future recession, prompting investors to sell off heavily in the stock market and turn to safe-haven bonds.
