© Reuters. File photo: October 28, 2013, Wall Street sign outside the New York Stock Exchange in New York. REUTERS/Carlo Allegri
Author: Echo Wang
(Reuters)-The US stock market closed mostly lower on Wednesday. After data showed that employment growth slowed in July, it fell from a historical high. General Motors (NYSE:) hit its worst day since early March.
General Motors shares fell 8.9%, highlighting the uncertainty faced by global automakers during periods of technological and economic turmoil. Rival Ford Motor (NYSE:) Co’s shares fell 5.0%.
Nine of the 11 Standard & Poor’s indexes fell, and industrial and energy stocks both fell, as data showed that the growth of private employment in the US in July was much lower than expected, which may be constrained by shortages of workers and raw materials.
The blue-chip Dow Jones Index, which is heavily weighted in economically sensitive stocks, also fell.
After another report showed that the US service industry activity indicator jumped to a record high last month, the technology-based Nasdaq index bucked the trend, indicating that a broader economic rebound is still on track.
Rose Mayfield, investment strategist at Baird in Louisville, Kentucky, said: “This morning’s ADP employment report (is a) major error… People really lock in the number of first jobless claims for tomorrow and Friday’s Non-agricultural employment report.” “For me, this is an important driving factor (in today’s market).”
“Broadly speaking, the continuing evolution of COVID-19, and the reassessment of growth prospects by the Delta variants in recent weeks and months” led the market to accept what it meant for reinflation trading, and what it said to Mayfield ,Bond Market.
After six consecutive months of gains, as the economy rebounded deeply from a COVID-19-driven recession, and concerns about rising inflation masked strong corporate earnings, the benchmark S&P 500 was struggling in August due to concerns about growth rates The rising season.
Fed Vice Chairman Richard Clarida said on Wednesday that the central bank should be able to start raising interest rates in 2023.
Nevertheless, technology stocks and technology stocks such as Netflix Inc (NASDAQ:) and Facebook (Nasdaq:) It tends to perform better when interest rates are low and outperform the market.
The focus now turns to Friday’s monthly employment report from the Labor Department.
The Standard & Poor’s 500 Index fell 323.73 points or 0.92% to 34,792.67, and the Standard & Poor’s 500 Index fell 20.49 points or 0.46% to 4,402.66 points, and increased 19.24 points or 0.13% to 14,780.53.
Among the earnings-related measures, BorgWarner (NYSE:) despite exceeding profit expectations due to strong consumer demand for new cars, its stock price still fell, while Kraft Heinz (NASDAQ:) was driven by rising raw material prices. The coming margin pressures warned and fell.
Robinhood market Inc (NASDAQ:) rose 50.4% because the interest of celebrity fund manager Cathie Wood and small traders made the stock rise for the fourth consecutive trading day since its debut in the flat market last week.
The trading volume on the US exchange was 9.78 billion shares, while the average trading volume for the entire trading day in the past 20 trading days was 9.71 billion shares.
The ratio of the number of falling shares to the number of rising shares on the New York Stock Exchange was 2.02:1; on the Nasdaq, the ratio of 1.82:1 favored the decliners.
The Standard & Poor’s 500 Index hit 67 52-week highs and 3 new lows; the Nasdaq Composite Index hit 93 new highs and 107 new lows.