U.S. stock market's three major indices closed slightly higher

Employment better than expected, with 143,000 new jobs added in the U.S. in September

Middle East tensions continue, driving international oil prices higher

Chinese concept stocks surge, with the NASDAQ Golden Dragon China Index closing up 4.93%

Benefiting from better-than-expected employment data, market attention temporarily shifted from the Middle East situation to the U.S. economy on Wednesday (2nd), leading to a collective rise in the three major U.S. stock indices. However, the uncertainty surrounding the conflict between Israel and Iran still looms large, causing market pressure and resulting in relatively small gains for the major indices.

As of the close, the Dow Jones Industrial Average rose by 39.55 points, a gain of 0.09%, to 42,196.52 points; the NASDAQ Composite Index rose by 14.76 points, a gain of 0.08%, to 17,925.12 points; the S&P 500 Index rose by 0.79 points, a gain of 0.01%, to 5,709.54 points.

The U.S. added 143,000 new jobs in September

The ADP employment data released during the day showed an increase in hiring in the U.S. private sector in September, indicating that despite signs of weakness in the labor market, it remains on a growth trajectory. Specifically, U.S. companies added 143,000 new jobs in September, higher than the 103,000 added in August and also higher than the 128,000 expected by economists. The increase in job positions was widespread across most industries, with the leisure and hospitality sector leading with an increase of 34,000, followed by construction (26,000), education and health services (14,000), professional and business services (20,000), and other services (17,000). Information services was the only industry to see a contraction in positions, with a reduction of approximately 10,000 jobs.

Advertisement

For some investors, recent data suggests that concerns about an imminent downturn in the U.S. economy have been exaggerated. Larry Adam, Chief Investment Officer at U.S. investment bank Raymond James, stated that he still believes the U.S. economy will achieve a soft landing. In addition, Federal Reserve officials are closely monitoring employment data as they consider the next steps in monetary policy and interest rate trends. Currently, the futures market is pricing in a 25 basis point rate cut by the Federal Reserve in November, followed by a 50 basis point rate cut in December.

Middle East tensions continue, driving international oil prices higherMarket concerns linger around the situation in the Middle East. According to Xinhua News Agency, after launching a large-scale missile attack on Israel, Iran warned that if the United States and other Israeli allies assist in retaliation, their troops and interests in the Middle East will be subjected to a "severe blow" by Iran.

As a result, market risk aversion has surged, and investor trading enthusiasm has been somewhat diminished, leading to a market downturn. Analysts believe that as tensions escalate between Israel and Iran, along with ground operations in Lebanon, the market will face more uncertainty.

Lisa Erickson, head of open market due diligence at U.S. Bank Wealth Management, stated that the market indeed saw fluctuations due to the recent increase in geopolitical tensions. Although investors usually do not worry too much about these events unless they have a clear impact on the economy, there is a noticeable rise in tension.

International oil prices continue to rise. The November delivery of WTI futures on the New York Mercantile Exchange rose by 1.69%, closing at $71.01 per barrel; the nearest month contract for Brent crude futures increased by 1.19% to $74.76. Fawad Razaqzada, a market analyst at City Index, said that the Middle East conflict is currently the key factor affecting oil prices, and if the conflict further escalates, crude oil prices may rise by another $5 in the next few days.

International gold prices experienced a slight decline. As of the reporter's deadline, spot gold fell by 0.17% to $2,658.80 per ounce.

Chinese concept stocks are in high spirits, with the NASDAQ Golden Dragon China Index closing up by 4.93%.

Chinese concept stocks continued their previous upward trend, showing strength across the board. KXIN closed with a surge of 171.51%, Hai Chuan Securities rose by 63.69%, NetEase Youdao increased by 37.73%, Tiger Brokers went up by 29.37%, Bilibili rose by 10.96%, iQIYI increased by 5.98%, Baidu gained 4.40%, and Alibaba rose by 2.23%.

In terms of individual stocks, Tesla closed down by 3.49% due to delivery volumes not meeting expectations. Its financial report showed that the total deliveries for the third quarter of 2024 were 462,890 vehicles, below the market estimate of 463,310. Market analysis points out that Tesla is facing increasing competitive pressure: in the United States, electric vehicle company Rivian is maturing, and traditional automotive brands Ford and General Motors have seen increased electric vehicle sales after adjusting their performance targets; in China, companies such as BYD and Geely, as well as new-generation automakers like Li Auto and NIO, have also achieved strong growth.

Sports brand Nike closed down by 6.80%, with its latest financial report showing that first-quarter revenue did not meet expectations and withdrew its full-year performance forecast. Nike's net earnings per share for the first quarter were $0.70, higher than analysts' expected $0.52, but a significant 26% decrease year-over-year. At the same time, Nike's revenue was $11.59 billion, below analysts' expected $11.65 billion, a 10% decrease year-over-year. Market analysis points out that due to concerns about slowing sales growth and pressure from emerging sports brand competitors, Nike's stock price has fallen by more than 20% so far this year.