In US stock trading on the morning of the 1st, the Dow Jones Industrial Average fell more than $188, while the tech-heavy Nasdaq Composite also declined. Higher oil prices and rising long-term interest rates are weighing on investor sentiment.
In New York trading on the morning of the 1st, the Dow fell $188.26 from the previous close to 52,997.64, while the Nasdaq Composite dropped 235.75 points to 26,135.14, with the major stock indexes falling across the board. Renewed tensions in the Middle East and movements in crude oil futures weighed on the market.
With elevated oil prices and rising long-term interest rates worldwide weighing on investor sentiment, expectations for a Federal Reserve rate hike also intensified as a factor pushing down the stock market. Among Dow components, Caterpillar and Amazon.com fell more than 2%, weighing on the market, while healthcare-related stocks including UnitedHealth Group, Merck and J&J were relatively firm.
The US Labor Department's July JOLTS report showed that nonfarm job openings rose by 89,000 from the previous month to 7.271 million, increasing for the first time in three months. The ISM's August manufacturing PMI came in at 54.6, below the market forecast of 55.2, after which the market's decline narrowed. Market focus is expected to shift to the jobs report due to be released this weekend.
The market's main focus is the upcoming US jobs report and its impact on interest rates and the course of monetary policy. Inflation concerns stemming from higher oil prices and upward pressure on interest rates may persist, and investors are closely watching upcoming economic data releases.