Congress passed a temporary budget to keep the government running until November 17, prompting markets to raise bets on a Federal Reserve rate hike this year and further trim bets on a rate cut next year.
The rise in Treasury yields weighed on Wall Street, with the yield on the 10-year Treasury note closing at 4.682 per cent after briefly topping 4.7 per cent for the first time since October 2007.
The dollar index rose again, briefly breaking through 107. The dollar index, which measures the greenback against six major currencies, rose 0.74 percent on the day to close at 106.903.
In addition, Fed Chairman Jerome Powell's latest voice will focus on maintaining good labor market performance over a sustained period of time. The Fed's new "King Eagle" reiterated that it expects it will take several more rate hikes to bring inflation down to the central bank's target.
U.S. stocks mixed in September ISM manufacturing rises to 49
On October 2, local time, the three major stock indexes of the United States were mixed, as of the close, the Dow fell 0.22% to 33,433.35 points; The S&P 500 edged up 0.01% to 4,288.39. The Nasdaq rose 0.67 percent to 13,307.77 points.
The small-cap focused Russell 2000 closed down 1.73 percent, turning the index from positive to negative so far this year.
The US House of Representatives and Senate passed a temporary budget just hours before a midnight deadline on Saturday. The temporary budget would keep the government running until November 17.
In terms of macro economy, the final Markit manufacturing PMI for September in the United States was 49.8, expected to be 48.9, the preliminary value of 48.9. Chris Williamson, chief business economist at Standard & Poor's Global Market Intelligence, said it was welcome that business conditions in the manufacturing sector were near stability in September, but a further increase in price pressures was a concern on the inflation front. The output side reversed some of August's losses as rising employment and improved supply helped factories fill backlogs of orders. Although the pace of production growth remains disappointing due to a further decline in new orders received during the month, particularly in export markets, there are signs that the situation will improve as we approach the end of the year.
Williamson also said manufacturers' expectations for future output had jumped to their highest level in almost a year and a half, with supply conditions continuing to improve and the rate of decline in orders slowing sharply in recent months, partly due to fewer producers and customers reporting cost-focused inventory reduction policies. The news on the inflation outlook was less encouraging as producers' costs rose at the fastest pace in five months, largely due to higher oil prices. These increased costs have already led to higher prices charged to customers, which will inevitably lead to renewed upward pressure on inflation.
Us ISM manufacturing index in September 49, the highest since November last year, expected 47.9, 47.6 before August. 50 is the dividing line between growth and contraction. It hit a multi-year low in June and has gained three points in the three months since. Among them, the new orders index of 49.2, although still below the 50 mark, but hit the highest in more than a year, the pre-August value of 46.8. New export orders also picked up from August, rising to 47.4 from 46.5. The employment index moved back above the line separating expansion from contraction for the first time in four months, hitting 51.2 from 48.5 in August. The expansion in factory payrolls has allowed producers to make more progress with their order backlogs.
By sector, activity shrank in 11 sectors in September, led by printing, furniture, plastics and rubber, and paper products. Activity expanded in five areas, including food and beverages, textiles and non-metallic minerals. Meanwhile, while supply chains and prices continue to stabilize, strikes against the Big Three U.S. automakers could also slow progress in the industry.
"Businesses are still appropriately managing output as orders continue to be weak, but the month-on-month improvement in the PMI in September is a clear positive," said Timothy Fiore, chairman of the ISM Manufacturing business Survey committee.
Powell voice
On October 2, local time, Federal Reserve Chairman Jerome Powell said at a meeting with community and business leaders in Pennsylvania that it will focus on maintaining good labor market performance over a sustained period of time.
Powell did not comment on current monetary policy or the economic outlook in his brief opening remarks.
Powell noted that we are still suffering from the negative effects of the pandemic, with Labour shortages in healthcare and ongoing difficulties in childcare services, along with other issues such as a health crisis.
Powell said that if the labor market can be kept strong for a sustained period of time, a lot of good things can happen in addition to real wage growth. The government is trying to expand the workforce.
"In fact, as the expansion gets longer, more and more of the wage demand is going to those at the lower end of the wage scale." "It's all very beneficial. But for that to happen, history has shown very clearly that we need a stable price."
Separately, Fed Governor Jeffrey Bowman said again on Monday that he expects it will still take several rate hikes to bring inflation down to the central bank's target. "Given the current level of monetary policy restraint, progress on inflation is likely to be slow," Bowman said. She added that "further policy tightening is needed to reduce inflation in a sustainable and timely manner."
Federal Reserve Vice Chairman Michael Barr said the central bank may have reached, or is close to, a sufficiently restrictive level of interest rates, but will likely need to keep them at their current high levels for some time.
Two weeks ago, the Fed decided to keep the target range for the federal funds rate at 5.25% to 5.50%. Since March 2022, the bank has raised interest rates 11 times in an intensive effort to curb high inflation, taking them from near zero to a range of 5.25% to 5.5%, the highest level in 22 years.
Big tech stocks rally
In sector terms, eight of the 11 major S&P 500 sectors fell and three rose. The utilities and energy sectors led the declines with losses of 4.72% and 1.91%, respectively, while the communications services and technology sectors led the gains with gains of 1.47% and 1.33%, respectively.
Large tech stocks rose collectively, with Nvidia up nearly 3%, Google A up 2.53%, Facebook parent Meta up more than 2%, Microsoft, Amazon up nearly 2%, Apple up more than 1%, and Tesla up slightly.
Nvidia rose 2.95 percent to $447.82 a share, its highest level in half a month, bringing its market value back above the $1.1 trillion mark. On the news, Goldman Sachs added Nvidia to its "conviction list" and upgraded its rating from "buy" to "strong buy."
Tesla edged up 0.55 percent and was down more than 2 percent at one point. The company on Monday reported third-quarter production and deliveries of 435,100 vehicles, below the 461,600 expected by Wall Street. Data show that in the third quarter of 2023, Tesla produced a total of 430,500 electric vehicles and delivered 439,100 electric vehicles. The production of Model S and Model X was 13,688 vehicles and the delivery was 15,985 vehicles. Model 3 and Model Y production was 416,000 vehicles, with 419,100 deliveries.
Energy stocks fell sharply, with Caron Oil down nearly 6%, Marathon Oil, Devon Energy down more than 4%, Occidental Petroleum down nearly 4%, BP, Conocophillips, Petrobras down more than 2%, ExxonMobil, Shell, Chevron down more than 1%.
International oil prices fell sharply, as of the end of the day, the New York Mercantile Exchange for November delivery of light crude oil futures prices fell 1.97 dollars, closed at 88.82 dollars a barrel, down 2.17%; London Brent crude for December delivery fell $1.49, or 1.62 per cent, to settle at $90.71 a barrel.
Most of the popular Chinese stocks fell, NIO fell nearly 3%, Ideal Automobile, Xiaopeng Automobile, Futu Holding, Bilibili fell more than 1%, Baidu, iQiyi, Tencent music, Vipshop, NetEase, Alibaba, Jingdong and other small declines; Pinduoduo rose more than 1%.
46-year-old bank executive jumps to death
On October 1, local time, the Daily Mail reported that Greg Beckett, a 46-year-old Wells Fargo executive, jumped to his death from a board room on the 14th floor of the company's headquarters in Wilmington, Delaware. Gregg has been in charge of Wells Fargo's internal controls, which are designed to protect the bank from risk. His family said Greg had been under a lot of stress at work.
Most big bank stocks fell, with Wells Fargo down more than 3 percent, Bank of America and Charles Schwab down more than 2 percent, Goldman Sachs, Morgan Stanley, Citigroup and UBS down more than 1 percent and jpmorgan Chase down nearly 1 percent.
The largest health care strike in the United States is expected to begin
CCTV news, according to CNN reported on October 1 local time, the contract between Kaiser Medical Group and the group's labor union alliance expired on the evening of September 30 local time, but the two sides failed to reach a labor agreement. The union warned that if no agreement is reached, its members plan to go on strike from October 4 to 6, covering health care facilities in five states, including California and Washington.
The Kaiser Permanente Union coalition has more than 75,000 members, and if a strike begins, it would be the largest health care strike in U.S. history.
Kaiser Permanente is the largest privately held managed care organization in the United States, operating 39 hospitals and nearly 700 health care facilities in eight states, including Hawaii, Washington, California, and Washington, D.C.
The main reasons for the Kaiser Medical Group workers' strike are the tight U.S. labor market, the expiration of union contracts and the rising cost of living caused by high inflation, and many front-line medical workers are struggling to cope with the rising cost of living.
The main demands of Kaiser Healthcare workers include across-the-board wage increases to address the current rising cost of living, enhanced job protection for subcontracting and outsourcing workers, improved health benefits for retired employees, as well as addressing staffing shortages since the COVID-19 pandemic and improved working conditions.
'We are overworked and can no longer provide patients with the care they deserve,' said John Williams, a Kaiser Permanente customer service representative.
On September 30, the union said in an interview that if a new agreement cannot be reached after the expiration of the labor agreement, the union will decide to launch a warning strike between October 4 and 7 in five states including California, Colorado, Oregon, Virginia, Washington and Kaiser Permanente Medical Group affiliated medical institutions in Washington, D.C. It will decide whether to expand the strike depending on the situation. If the strike begins, it will be the largest health care strike in U.S. history.
转播
