The NYSE closed high on news of improved weekly unemployment indicators.
The Dow Jones 30 industrial average rose 131.02 points or 0.38 percent to 34,633.53 on the New York Stock Exchange (NYSE) on Tuesday.
The Standard & Poor’s 500 index rose 22.44 points or 0.52 percent to 4319.94. The S&P 500 hit a record high for the 35th time this year and closed at an all-time high for six consecutive trading days.
The tech-heavy Nasdaq index closed at 14,522.38, up 18.42 points or 0.13 percent from the previous day.
U.S. weekly unemployment indicators and manufacturing indicators released on the same day were positive. The number of U.S. unemployment insurance claimants fell 51,000 from the previous week to 364,000 (seasonally adjusted), the lowest level since the pandemic. The figure was below the 390,000 increase estimated by the Wall Street Journal (WSJ).
NYSE closed high even as bond rate didn’t move much
The fact that the number of people claiming unemployment insurance continues to decrease is interpreted as a sign that employment is showing signs of recovery, meaning that layoffs have decreased.
Recently, the market is paying attention to employment indicators as the Federal Reserve System (Fed) has focused on job recovery as a prerequisite for tightening.
The U.S. 10-year government bond rate has not moved much from 1.46% despite the news that the weekly unemployment index has improved.
The Supply Management Association (ISM) announced that the Manufacturing Purchasing Managers Index (PMI) was 60.6 in June. The figures on the day fell slightly below the 61.0 forecast of experts compiled by the Wall Street Journal (WSJ) and 61.2 of the previous month, but historically above 60 suggests that the U.S. manufacturing industry is in a very strong expansion trend.
The manufacturing PMI (seasonal adjustment) announced by IHS Market in June was 62.1, which is the same level as the previous month’s. This is the highest level ever.
Energy-related stocks rose more than 2% by industry, leading the market.
Oil prices rose more than 2 percent ahead of a meeting of OPEC plus oil producers, which consists of OPEC and non-OPEC oil producers. The price of West Texas crude oil (WTI) surpassed $75 a barrel for the first time since October 2018.
According to the Chicago Mercantile Exchange (CME) Fedwatch, the Federal Fund (FF) rate futures market reflected the possibility of a 25bp rate hike in March next year at 9.8 percent. On the previous day, the figure was 14.5 per cent.
On the Chicago Stock Exchange (CBOE), the volatility index fell 0.35 points, or 2.21 percent, to 15.48.
