According to financial analysts on Monday, the New York stock market closed higher last Friday as employment figures met expectations. Investors interpreted the U.S. job market as exhibiting a “Goldilocks” condition – neither overheating nor overcooling – which propelled the market upward. However, the Dow Jones Industrial Average, heavily weighted toward traditional industries, showed a downward trend, and major tech stocks also failed to show significant gains.
Samsung Securities analyst Seo Jeong Hoon reported that the data from the U.S. Labor Department showed that November’s non-farm payrolls increased by 227,000, surpassing the projected 220,000. “While the unemployment rate was 4.2%, above the expected 4.1%, investors judged the job market to be Goldilocks, leading to a decline in market interest rates and bolstering stock prices,” Seo explained.
“The interest rate futures market now prices in nearly 90% chance of a rate cut at December’s FOMC meeting, up from around 70%. The University of Michigan’s consumer sentiment index also hit an eight-month high, further fueling investor risk appetite,” he added.
The S&P 500 rose 0.25% compared to the previous day, marking its 57th record close this year. The Nasdaq climbed 0.81%, reaching its 36th all-time high in 2023. In contrast, with a higher concentration of traditional industries, the Dow Jones slipped by 0.28%, continuing its losing streak for two days. Seo attributed this underperformance partly to UnitedHealth Group, which fell over 5% for two consecutive days following an attack on its CEO.
By sector, consumer discretionary stocks led sectoral gains with a 2.39% increase, with communication and IT sectors also outperforming. Energy, utilities, and healthcare sectors saw notable declines.
Tech giants showed mixed results. Tesla, Broadcom, Amazon, and Meta posted gains, while Apple remained relatively flat and Nvidia declined by 1.81%.
“Several stocks soared on strong earnings reports,” Seo noted. “Lululemon and Ulta Beauty jumped 15.9% and 9.0% respectively, while Victoria’s Secret surged 11.6% following an earnings surprise.”
