USA: Wall Street has the worst month since the beginning of 2023

Thursday’s session on Wall Street ended with slight changes in the main indices. Over the month, they recorded over 1 percent. August was the worst month for Nasdaq since early 2023. Investors await Friday’s US labor market data for August.

The Dow Jones Industrial Average closed down 0.48%. and amounted to 34,721.91 points.

The S&P 500 fell 0.16 percent at the end of the day. and amounted to 4,507.66 points.

The Nasdaq Composite gained 0.11 percent. and closed the session at 14,034.97 points.

All three major U.S. stock indices ended August above 1 percent. minus, although the last few days of the month were marked by increases.

Investors analyze the latest macro data from the US. On Friday, the US labor market report for August will be published.

The US PCE deflator was 3.3% in July. y/y, compared to 3 percent yoy a month earlier and the consensus at 3.3 percent. The base rate was 4.2 percent. y/y vs 4.1 percent a month earlier and expectations at 4.2 percent. y/y

“Markets take the inflation report with a grain of salt. While the details in the report are a bit disappointing, the Fed is unlikely to change its plan to hold rates at the current level at the September meeting,” said Jeffrey Roach, chief economist at LPL Financial.

The number of people applying for unemployment benefits for the first time in the US last week was 228,000. 235,000 were expected. against 228 thousand previously, after the correction from 230 thousand.

“Markets are heavily data-driven at the moment, adapting the stance taken by central bankers, and it seems that a worse-than-expected reading could dampen the recent upbeat sentiment,” said Russ Mold, chief investment officer at AJ Bell.

“The catalyst for the market we are looking for will be the Fed meeting in September. Tomorrow’s data from the US labor market will be extremely important for this meeting. Without a slowdown in wage growth, a soft landing is not possible,” said Hugh Gimber, global market strategist at JPMorgan Asset Management.

According to the FedWatch CME Group tool, the chances of interest rates in the US will remain unchanged after the September meeting at 88%. On the other hand, the probability that interest rates will not change in November is 56 percent.

Atlanta Fed Chairman Raphael Bostic said monetary policy is tight enough to bring inflation down to 2 percent. target in a timely manner.

The manufacturing activity index (PMI) in the Chicago area rose to 48.7 points in August. from 42.8 points in last month. Analysts expected the index at 44.2 points.

In oil, October WTI futures are trading at $83.55 a barrel, up 2.3%, while October Brent futures are up 1.1%. to USD 86.83/b. (PAP)

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