At the close the Dow Jones had added 47 points, or 0.3% to 16,049. The S&P 500 surged 35.94 points, or 1.91 percent, to 1,920.03 on Wednesday, Xinhua reported. “We’ve got the employment number tomorrow”. “Earnings are probably the next catalyst that could help stem a few of the losses here, but those don’t really kick off meaningfully until October 12th and after”. Inflation remains below the Fed’s 2% target. In response, the futures market places odds for an October or December rate hike dropped hard.
“(The Fed) is concerned that the decelerations of global GDP will have a significantly higher effect on the US than the markets are pricing”, said Omar Aguilar, chief investment officer of equities at Charles Schwab Investment Management in San Francisco. The Europe Stoxx 600 erased earlier gains and were slightly lower after the jobs report.
The Labor Department report is expected to show an increase of about 203,000 jobs in September following the addition of 173,000 jobs in August. This is the last major data before the Fed meets later this month. “There’s more panic in the market than there is in the economy“. The worst performing of those indexes, the DAX, is down 11.6 percent for the July-September quarter. Asian markets continued to struggle on Tuesday.
For the week, the Dow industrials is set to slip 0.3%, while the S&P 500 is eyeing a decline of about 0.45%. Winners and losers were evenly split among the S&P 500’s 10 main industries.
As for sectors, energy led the way with a 4% gain, while financials were the laggards of the day, down 10 basis points.
However, Raiko Shareef, a sells strategist in Wellington at Bank of New Zealand, is advised potential clients “the stabilisation at risk feeling looks relatively unconcluded to really us”.
More than half of the S&P-500 stocks tumbled over 20 percent during the quarter.
Huntsman shares plunged 23 percent after the chemical maker warned it expects third quarter to be hurt by soft demand in Asia Pacific and lower titanium dioxide selling prices. The NYSE Arca Computer Hardware Index is down by 2.1 percent, with storage stocks leading the way lower.
Twitter jumped 5.3 percent following a report that co-founder and interim chief executive Jack Dorsey will stay on as CEO, bringing an end to the company’s search for a top executive. Alcoa jumped 2.81 percent.
Semiconductors, one of the leaders yesterday, reversed course to pace declines today among technology companies. For the week, it dropped 0.9 percent, falling for the third straight week. South Korea’s Kospi fell 1.9 percent, and Australia’s S&P/ASX 200 lost 2.1 percent. The unemployment rate probably held at 5.1 per cent, the lowest since April 2008.
Nasdaq 100 e-minis were down 24.5 points, or 0.58 percent, on volume of 40,195 contracts. Joy Global is the second-worst performer in the benchmark this year, down 69 percent.