U.S. stocks lose ground despite uptick on global markets

U.S. stocks lose ground despite uptick on global markets

Lola Evans
05 Aug 2023, 06:11 GMT+10

• The Standard and Poor’s 500 index closed at 4,478.03, showing a decrease of 23.86 points or 0.53 percent.
• The Dow Jones Industrial Average concluded the day at 35,065.62, down by 150.27 points or 0.43 percent.
• The NASDAQ Composite index settled at 13,909.24, declining by 50.48 points or 0.36 percent.

NEW YORK, New York – U.S. stocks declined on Friday after the Bureau of Labor Statistics reported that the American economy added 187,000 jobs in the month of July, and added an average of 218,000 jobs per month over the past three months. However this was below expectations.

The unemployment rate ticked down to 3.5 percent, continuing the longest period of under 4-percent unemployment in over fifty years.

“For the fifth straight month, the labor force participation rate sits at 62.6 percent, a sign of the labor market staying on course and navigating changes to the makeup of our working population,” Acting U.S. Secretary of Labor Julie A. Su said in a statement published on Friday.

Investors however saw the data as an indication the economy is running into headwinds. This was also reflected in the bond markets where yields fell.

“There’s been this building narrative as of recent… that the soft landing is a sure thing, the economy is not going to slow materially,” Charlie Ripley, senior investment strategist for Allianz Investment Management in Minneapolis told Reuters Friday.

“Loosening up of the labor market is a sign that shows that the economy is slowing to some extent,” Ripley added.

The S&P 500 index closed at 4,478.03, showing a decrease of 23.86 points or 0.53 percent. The total trading volume for the day reached 2.382 billion shares.

The Dow Jones Industrial Average concluded the day at 35,065.62, down by 150.27 points or 0.43 percent. The total traded volume amounted to 336.731 million shares.

The NASDAQ Composite index settled at 13,909.24, declining by 50.48 points or 0.36 percent. The total trading volume for the day stood at 4.74 billion shares.

Global Foreign Exchange Markets Close with Mixed Movements on Friday

The euro rebounded Friday after enduring a soft week. The euro gained 0.52 percent, or 0.0057, to settle at 1.1006.

The Japanese yen strengthened, adding 0.49 percent, or 0.69 points, closing around 141.82.

The Canadian dollar pair (USD/CAD) saw a modest decline of 0.24 percent, or 0.0032, reaching 1.3385.

The British pound edged up 0.30 percent, or 0.0037 points, to 1.2746.

The Swiss franc was a tad higher, advancing 0.12 percent, or 0.0010, to settle around 0.8729.

The Australian dollar saw a positive gain of 0.28 percent, or 0.0018, reaching 0.6568.

The New Zealand dollar also experienced an uptick, rising by 0.24 percent, gaining 0.0014 points, to 0.6091.

The foreign exchange market’s movements on Friday mirrored the cautious sentiment prevailing among investors. The economic landscape, coupled with geopolitical developments, influenced currency movements, leading to mixed performances across major currency pairs.

Global Stock Markets Mostly Close with Positive Gains on Friday

On Friday, world stock markets experienced a positive surge, with most major indices closing higher despite a few exceptions. Investors showed resilience amid ongoing economic challenges, pushing several indices to record incremental gains.

In contrast to the U.S. markets, the S&P/TSX Composite index in Canada experienced gains. It closed at 20,236.04, reflecting an increase of 115.30 points or 0.57 percent. The total traded volume for the day amounted to 217.501 million shares.

The London Stock Exchange saw the FTSE 100 rise by 35.21 points, a 0.47 percent increase, closing at 7,564.37.

Europe’s Euronext 100 Index closed at 1,369.69, after gaining 8.50 points, or 0.62 percent.

The ESTX 50 PR.EUR also performed well, gaining 28.28 points, or 0.66 percent, reaching 4,332.91.

Similarly, in Germany, the DAX Performance Index witnessed a 0.37 percent rise Friday, gaining 58.48 points to settle at 15,95