INTERNEWSTIMES.COM – October’s notorious volatility has taken hold of the stock market, with U.S. and Asia-Pacific markets experiencing a mixed bag of gains and losses.
The S&P 500 and Dow Jones Industrial Average closed lower on Thursday, while the Nasdaq Composite held steady. Across the Pacific, Hong Kong’s Hang Seng index rebounded on Friday after a Thursday dip, while Australia’s S&P/ASX 200 saw a slight decline.
A recent surge in Chinese stocks, fueled by Beijing’s economic stimulus announcement, has sparked some investor concerns about its sustainability. However, analysts remain optimistic, predicting continued growth in the Chinese market after the Golden Week holiday.
Oil prices soared over 5% on Thursday following President Biden’s comments about potential support for an Israeli strike on Iranian oil facilities. Goldman Sachs anticipates a $20 per barrel increase in oil prices next year if Iranian oil production is disrupted.
The strike at U.S. East and Gulf Coast ports ended on Thursday after a tentative agreement on wages was reached between the International Longshoremen’s Association and the United States Maritime Alliance. The deal extends the current contract until January 15, allowing for further negotiations on other issues.
Despite a strong September, stocks have faced a downturn in October, a month known for its volatility. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite are all poised for a losing week.
First-time jobless claims for last week rose to 225,000, exceeding the consensus estimate of 220,000. This data point suggests potential weakness in the U.S. labor market.
All eyes are now on the September jobs report, scheduled to be released later today. A strong jobs report, indicating a healthy economy, could provide a much-needed boost to market sentiment. However, a weaker-than-expected report might lead the U.S. Federal Reserve to consider a larger rate cut, potentially benefiting markets in the long run.
With geopolitical tensions and rising oil prices adding to the mix, the jobs report will be a crucial indicator of the market’s direction in the coming weeks. (Red)
