U.S. stock markets opened with a divided performance on Friday evening, Beijing time, following the release of July's non-farm payrolls data that unexpectedly showed a decline in hiring.
The Dow Jones Industrial Average dipped 35.84 points, or 0.07%, to 53,849.26 at the open. In contrast, the S&P 500 climbed 24.43 points, or 0.32%, to 7,734.39, while the Nasdaq Composite surged 202.617 points, or 0.77%, to 26,550.969.
The July non-farm payrolls report revealed a loss of 23,000 jobs, a stark contrast to the economist consensus of an 83,000 gain forecasted by a Dow Jones survey. Meanwhile, the unemployment rate edged down to 4.1%, beating expectations that it would hold steady at 4.2%. Traders are now betting that this data will deter the Federal Reserve from raising interest rates.
In pre-market trading, Airbnb shares jumped 7% after the vacation rental company reported quarterly revenue and profit that exceeded analyst estimates. Cloudflare shares also soared 16% in pre-market action, following the cloud cybersecurity firm's release of robust outlooks for both the full year and the current quarter.
Oil prices edged lower on Friday, with West Texas Intermediate crude for September delivery falling 0.6% to $76.85 per barrel. The international benchmark Brent crude slipped 0.7% to $81.90 per barrel.
The previous trading session saw Wall Street close lower as rising oil prices weighed on equities. The Dow Jones lost over 460 points, or 0.9%, snapping a five-day winning streak. The S&P 500 fell 0.2%, and the Nasdaq Composite dipped marginally by 0.1%. Despite this pullback, the major indices are still on track for a second consecutive weekly gain.
The Nasdaq is poised to post its best weekly performance since May, fueled by a rebound in chip stocks. The iShares Semiconductor ETF (SOXX) has risen more than 5% this week. Market sentiment on Wall Street has improved notably this week, despite the recent downturn, as investors hope that a potential agreement to reopen the Strait of Hormuz will ultimately lower oil prices and tame inflation expectations.
The technology sector, particularly semiconductors, has been a standout performer this week. The recent liquidation of momentum trades last month has convinced many that the market has undergone the necessary correction to fuel the next leg upward. Strong corporate earnings have further bolstered near-term confidence. "There will be a wave of chasing gains," said Tom Lee, Head of Research at Fundstrat Global Advisors, on Thursday. "I believe this chase will push the index toward 7,900 and 8,000 points this month."
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