FX.co ★ The Decisive Impact of the Economy: How News Shapes the Future of Wall Street and Interest Rates

The slowdown in the pace of private sector job growth proved to be more moderate than previously forecasted, which somewhat dampens the sentiment. HP company experienced a decline in its value due to reduced profit forecasts for the fiscal year. While the report on credit card fee increases pushed Visa and Mastercard stocks upward, Nvidia demonstrated incredible resilience, rising by 1% and setting a new all-time high stock price. The US indices are presented as follows: the S&P 500 showed a growth of 0.38%, Nasdaq improved by 0.54%, and Dow also gained 0.11%.

The session's closure also reflected interesting trends. The S&P 500 and Nasdaq indices rose, being on the growth side, in response to new economic indicators pointing to a slowing pace of American economic development. This, in turn, fuels hopes that the Federal Reserve will postpone the question of further interest rate hikes until September. Today's national ADP employment report showed an interesting development of events. An increase in private sector employment by 177,000 in August, compared to a forecast of 195,000, highlighted a weakening labor market.

Today's growth leaders in the S&P 500 index include Insulet Corporation stocks, which rose by 6.42%, reaching $201.65, as well as Allstate Corp stocks, which grew by 3.42% and closed at $109.28. Additionally, Match Group Inc stocks increased by 3.15%, concluding the session at $46.20. Nasdaq showed its highest close since the beginning of August, emphasizing a growing positive trend.

Updated gross domestic product (GDP) data emphasized that the U.S. economy grew by 2.1% in the second quarter, slightly below the preliminary forecasts of 2.4%. This diminishes investors' concerns about future Federal Reserve interest rate hikes, noted Rob Haworth, Senior Investment Strategist at U.S. Bank Wealth Management. This new perspective of a softer adaptation of the U.S. economy supports interest in stocks with growth potential and other riskier assets, Haworth added.

Nvidia stocks showed an impressive growth of 1%, setting a new historical price record. During the session, shares worth a total of $35.5 billion were sold. Mastercard and Visa stocks also demonstrated growth, each adding approximately 0.5%. The increase in credit card fees, as indicated in the report, served as a stimulus for the growth of these companies' data.

HP Inc (HPQ.N) shares experienced a decline of 6.6% after the personal computer manufacturer lowered its forecast for the current year due to slowing demand. Traders are increasingly confident that the Federal Reserve will keep current interest rates unchanged in September. The probability of such an outcome rose to nearly 89%, compared to 86% the previous day. It's also worth noting that expectations of a rate hike pause in November increased to 54% from around 52%, as shown by the CME Group's FedWatch indicator.

The yield on U.S. Treasury bonds dropped to nearly a three-week low, and the yield on 10-year bonds remained stable at 4.12%. Trading volume on U.S. exchanges was slightly below average: total turnover amounted to 9.0 billion shares compared to an average of 10.6 billion shares over the last 20 sessions.

The S&P 500 stock index showed a growth of 0.38%, closing trading at 4514.87 points. The Nasdaq index improved by 0.54%, reaching 14,019.31 points, while the Dow Jones Industrial Average added 0.11%, closing at 34,890.24 points. In the NASDAQ Composite index, today's growth leaders include iCoreConnect Inc (NASDAQ:ICCT) stocks, which increased by 118.89%, reaching $12.28, as well as AgileThought Inc (NASDAQ:AGIL) stocks, which grew by 83.03% and closed at $0.28. Additionally, NanoVibronix Inc (NASDAQ:NAOV) stocks rose by 65.31%, concluding trading at $2.43.

Out of the 11 sectoral indices of the S&P 500, nine demonstrated growth, led by the information technology index (.SPLRCT), which added 0.83%. The energy sector also showed positive dynamics, increasing by 0.51%. Investor attention is currently focused on the personal consumption expenditures (PCE) price index, a preferred inflation indicator for the Federal Reserve (FRS), as well as upcoming non-farm payroll data to be published on Thursday and Friday, respectively.

These data will provide a clearer picture of future movements in interest rates. Trading activity this week has been relatively moderate due to the approaching Labor Day holiday in the United States, which will take place on Monday. Brown-Forman (BFb.N) company stocks fell by 4% after the Jack Daniels whiskey manufacturer failed to meet sales and profit forecasts in the first quarter.

In this situation, growing companies prevailed over the ones losing, with a ratio of 1.9 to 1. As a result, the S&P 500 index set 24 new highs and one new low, while the Nasdaq index recorded 70 new highs and 76 new lows. The CBOE Volatility Index, which assesses market fluctuations based on S&P 500 options trading data, decreased by 3.94% to reach 13.88.

The price of December futures for gold increased by 0.33%, or $6.40, reaching $1,000 per troy ounce. It's also worth noting that October WTI oil futures prices increased by 0.69%, or $0.56, to $81.72 per barrel, while November Brent oil futures prices rose by 0.45%, or $0.38, to $85.29 per barrel.

In the Forex market, the EUR/USD pair barely changed, falling only by 0.42% to 1.09, while USD/JPY quotes increased by 0.25% to reach 146.24.

On this day, USD index futures decreased by 0.36% to reach 103.10.