U.S. Stock Exchange Successfully Turns Higher On Elon Musk's Power Despite Job I

U.S. Stock Exchange Successfully Turns Higher On Elon Musk's Power Despite Job Insecurity Concerns

The U.S. stock market started lower amid concerns that the employment slowdown was progressing faster as the job posting was less than expected. However, this caused the dollar and interest rates to fall, limiting the fall. The stock market, which has been fluctuating due to individual stock issues since then, has seen its strength expand and the index has succeeded in turning upward as Elon Musk said he expects to spend between $3 and $4 billion on Nvidia (+1.25%) this year. Since then, the Russell 2000 index of small and medium-sized stocks has fallen (Dau +0.36%, Nasdaq +0.17%, S&P 500 +0.15%, Russell 2000 -1.25%, and Philadelphia Semiconductor Index -0.70%)

* Variables: Employment slowdown, Musk

The number of job openings in the U.S. rose only 805.9 million, down from 8.355 million announced last month or 8.4 million expected. Professional and businesses increased by 12.2 million, but they declined in most industries, with healthcare and social care, which led to the recent increase in employment, falling by 0.204 million and local government education services also falling by 5.9 million. As a result, the overall number of job openings hit the lowest level since February 2021, and the number of jobs per person decreased from 1.3 to 1.2, leading to a rapid slowdown in employment.

Recently, the stock market has been sluggish despite the weak dollar and falling interest rates. The stock market has been strong in the meantime, reflecting the Fed's expectations for a rate cut if the indicators are sluggish, but now they are taken as a recession issue and reflected as a factor in the index's decline. As a result, despite the dollar's strength shrinking and interest rates falling as a result of the indicators, financial, energy and industrial goods are sluggish, and economic defense stocks such as essential consumer goods are solid.

Meanwhile, the index's rebound in the second half of the market came as other large technology stocks also rose as Nvidia (+1.25%) turned upward amid solid investor sentiment centered on technology stocks amid a weak dollar and falling interest rates. Nvidia remained solid due to falling interest rates, but it remained on the decline as it digests sales. However, when Tesla (-0.86%) CEO Elon Musk announced his plan to purchase a GPU worth between $3 million and $4 billion this year through his X account, the rebound expanded and turned upward. However, the fact that the sensitivity to favorable materials is reduced and the rise is limited due to the ongoing sale is different from the past.

* Features: Nvidia converts big tech shares higher

Nvidia (+1.25%) responds to lower interest rates late in the market, shrinks its fall, turns upward on Elon Musk's comments on large chip purchases. Other semiconductor industries such as Intel (-0.86%), Broadcom (+0.67%), AMD (-2.18%), Micron (-1.19%), and AI-related stocks such as Super Microcomputer (+0.13%), UI Pass (-1.43%) and C3.AI (+0.71%) also reduce or shift upward. However, as the sale is still being digested, sensitivity to rising factors such as falling again or shrinking gains is reduced

Nvidia's upward turn improved investor sentiment in technology stocks, and large technology stocks such as MS (+0.62%), Apple (+0.16%), Alphabet (+0.41%), Meta Platforms (-0.10%), and Amazon (+0.56%) also turned higher or shrank during the market, based on falling interest rates and weak dollar. In particular, the fact that they are large technology stocks that are expected to have solid performance in the event of a slowdown is also positive. CoolLoudStrike (-1.01%) is up 4% after-hours on better-than-expected earnings and guidance reports. HP Entertainment (-1.95%) is up 10% after-hours on better-than-expected earnings results.

As concerns over the economy were raised, financial stocks such as JPMorgan (-1.32 percent), BOA (-0.50 percent), Citigroup (-1.44 percent), Exxon Mobil (-1.56 percent), Chevron (-0.84 percent), ConocoPhillips (-1.41 percent), and industrial goods such as Caterpillar (-1.14 percent) were sluggish. On the other hand, essential consumer goods such as Walmart (+1.19 percent), Costco (+1.47 percent), P&G (+1.43 percent), and Coca-Cola (+1.60 percent) are strong

Contrary to the exit poll results, which showed that the Indian People's Party won a landslide victory in the Indian elections, the Indian stock market fell sharply on the previous day after the news that PM Modi's Indian People's Party was less than a majority. Reflecting this, Indian-related stocks such as ICICI Bank (-9.00 percent), HDFC Bank (-9.34 percent), and MakeMyTrip (-5.61 percent) fell sharply. On the other hand, Mexican stocks, which fell sharply the previous day, rose sharply, led by real estate company VTMX (+4.45 percent) and beverage company FMX (+5.28 percent)

* Related to the Korean stock market

MSCI Korea's ETF fell 0.35%, while MSCI's Emerging Markets ETF fell 1.40%, hurt by a sharp drop in Indian stocks. Philadelphia's semiconductor index fell 0.70%, the Russell 2000 index fell 1.25%, and the Dow transport index fell 0.91%. Night futures rose 0.56%. The one-month NDF dollar/won exchange rate, which affects the dollar/won exchange rate, which closed at 1,376.00 won the previous day, was at 1,372.5 won

* FICC: Safe Assets Strong

International oil prices continued to fall the previous day under the influence of the OPEC+ talks, which announced that they would reduce production cuts. Furthermore, concerns over a slowdown in the economy due to sluggish U.S. employment indicators increase the possibility of a slowdown in consumption and demand for crude oil in the future. Natural gas fell sharply, leaving behind the previous day's surge. In the case of the U.S., Europe fell sharply after reporting a repair schedule for the suspension of Norwegian maritime platforms.

The U.S. dollar shrank sharply after confirming that the employment slowdown is progressing rapidly. However, the yen continued to strengthen as the preference for safe assets grows due to concerns over a slowdown in the economy. However, the euro and pound are weak. Meanwhile, the Mexican peso weakened sharply the previous day after the presidential election results were announced and weakened to around 1% today. The Indian rupee also weakened to around 0.6% against the dollar after Modi's Bharatiya Janata Party failed to secure a majority in the parliamentary elections.

Treasury yields are safe assets due to economic slowdown, along with expectations that the Fed's rate cut will proceed due to sluggish employment indicators