Following the latest U.S. economic data releases, international gold prices surged sharply, while U.S. stocks experienced a collective decline.
On November 18, the three major U.S. stock indices opened lower and then plunged. As of the latest update, the Dow Jones Industrial Average fell over 1.2%, the Nasdaq Composite dropped 1.86%, and the S&P 500 declined more than 1%.
Most technology stocks were in the red, with Amazon and Microsoft both down over 2%. The semiconductor sector also saw widespread losses, with Micron Technology dropping 2.5% and TSMC declining 1.5%.
Chinese stocks listed in the U.S. also weakened, as the Nasdaq Golden Dragon China Index fell nearly 1%. Among individual stocks, NIO dropped over 2%, XPeng Motors slid close to 2%, Baidu Group dipped nearly 1%, while Weibo saw a slight gain.
After the U.S. data release, spot gold briefly climbed above $4,080 per ounce, having earlier fallen over 1% to below $4,000 during the session. New York gold futures also turned positive, rising back above $4,070. Spot silver extended its intraday gains to 1%.
The U.S. Labor Department reported that initial jobless claims for the week ending October 18 stood at 232,000, while continuing claims for the same period totaled 1.957 million.
Separately, ADP Research data showed U.S. businesses cut an average of 2,500 jobs per week in the four weeks ending November 1, indicating some loss of momentum in the labor market in late October. ADP's monthly employment report, released on November 5, showed private-sector payrolls increased by 42,000 after two consecutive months of declines.
The Bureau of Labor Statistics is set to release September's employment report on Thursday, with expectations for a 55,000 increase in total nonfarm payrolls from the previous month. Ahead of ADP's weekly data, several major companies announced layoffs for the month, including Amazon and Target. According to Challenger's report, planned job cuts in October reached the highest level for that month in over two decades.
In related news, former U.S. President Donald Trump stated on November 18 that he would only support a healthcare plan that returns funds "directly to the people" and allows individuals to negotiate their own insurance purchases. He posted on Truth Social: "People will be allowed to negotiate and buy better, higher-quality insurance. Power to the people! Congress, don't waste time and energy on anything else."
Comments