The US market made a strong jump on October 4, Friday, after the country's stellar job report which dims concerns over economic prospects ahead-also, providing more room for the Fed to cut rates in the upcoming policy. US stocks defied the concerns in the Middle East which continues to intensify each passing day. There's a fireball in Beirut, the home-town of Hezbollah's some of the intelligence headquarters. Israel continues to take an offensive approach in Lebanon. However, the conflict between Israel-Iran is a ticking bomb, and when it explodes into a full-fledged war will be keenly watched.
US Market On October 4:
Dow Jones: The Dow Jones Industrial Average or DJIA index opened at 42,248.26, and rallied to touch an intraday high of 42,361.38. Overall, the index has gained nearly 350 points so far in the trading session. Currently, DJIA is trading up by 341 points or 0.8% to 42,352.75.
S&P 500 Index: This index opened at 5,737.48, and skyrocketed to touch an intraday high of 5,753.21 which is near its 52-week high of 5,767.37. Currently, the S&P 500 index is up by 0.9% or 51.13 points to trade near the day's high of 5,751.07.
Nasdaq Composite: The tech-heavy index advanced by at least 227 points to hit an intraday high of 18,145.28, after opening at 18,130.42. The index currently is up by 1.22% or 219.38 points to trade at 18,137.85.
On stock-specific performances, Trading Economics data stated that the inancial sector was leading the gains, with JP Morgan adding 3.5%, BofA advancing 2.2% and Wells Fargo jumping 3.6%. Consumer discretionary also outperformed with Tesla (3.9%) and Amazon (2.5%) leading the gains. For the week, the S&P 500 added 0.4% and the Dow rose 0.5% while the Nasdaq was slightly higher.
US Job Data:
As per the US Bureau Of Labor Statistics, total nonfarm payroll employment increased by 254,000 in September, and the unemployment rate changed little to 4.1 per cent. Employment continued to trend up in food services and drinking places, health care, government, social assistance, and construction.
Further, the report pointed out that both the unemployment rate, at 4.1 per cent, and the number of unemployed people, at 6.8 million changed little in September. These measures are higher than a year earlier, when the jobless rate was 3.8 per cent, and the number of unemployed people was 6.3 million.
Yogesh Kansal, Co-founder and CMO, Appreciate said that the September jobs report is hard proof that a soft landing is within the grasp of the Federal Reserve. There is healthy momentum in the US labour market - US companies added 254,000 jobs when the projected increase was 150,000. Not just that, US unemployment has also ticked down to 4.1%, when economists expected that the unemployment rate would remain unchanged, or in fact, rise.
He further said, that the report also confirms that we will, most likely, conclude 2024 with two 25 bps cuts in November and December, without any big bang 50 bps rate cut.
However, Kansal also believes that the jobs report would have strengthened the narrative for market bulls, had it not been for the widening Middle East conflicts.
Now, with crude oil prices jumping by $3 a barrel, all eyes would be keenly glued to the fallouts of this geopolitical disturbance, he said.
Middle East War:
Israel continues its fierce bombardment on Beirut, and as per the latest reports, these intense strikes have assumably targeted Hezbollah's new leader, Hashem Safieddine, the successor of decades-old former leader Hasan Nasrallah. The IDF is trying to confirm whether the new leader of Hezbollah is dead or not. The development is yet to be confirmed.
Meanwhile, Iran's leader Ayatollah Ali Khamenei appeared before its army and devotees, on Friday sermon, which was his first appearance during a Friday sermon in many five years.
Khamenei determinedly assured his supporters that Israel won't last long, and praised Iran's military for the latest missile attack on Israel. Khamenei said the latest barrage of missiles on Israel was justified, and the actions of Hamas on October 7th were also 'legitimate'.
He praised the late-Nasrallah, while vowing to continue their commitment to Hezbollah. He even urged other Arab nations such as Afghanistan, Yemen, and Gaza to unite against Israel-America, citing the duo as a common enemy. These countries are dominated by terrorist groups Hamas, Houthis, and Taliban.
Lastly, he praised the resistance of Lebanon and Palestine, calling them 'brave fighters'.
Meanwhile, Israel continues to stay silent on the details of its retaliation plan against Iran. On the other hand, its long-term and strong ally, the United States continues to support the country in its retaliation on Lebanon after facing more than 11 months of rockets and missile attacks from the regime in Lebanon. Biden hints at US discussion on possible Israel attack on Iran's oil fields. Nonetheless, Biden does not believe that there could be an all-out war in the Middle East.
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