Mixed Close as Employment Data Are Digested…Tesla Hits Record High [New York Market Briefing]

On the 16th (local time), when data showed the U.S. unemployment rate surged to a four-year high, the New York stock market closed mixed.

At the New York Stock Exchange, the Dow Jones Industrial Average closed down 302.30 points (0.62%) from the previous trading day at 48,114.26. The Standard & Poor's (S&P) 500 index finished at 6,800.26, down 16.25 points (0.24%). The S&P 500 fell for 3 consecutive trading days.

By contrast, the tech-heavy Nasdaq Composite closed up 54.049 points (0.23%) at 23,111.46.

According to the U.S. employment report released that day, new jobs increased. The Bureau of Labor Statistics reported that nonfarm payrolls rose by 64,000 in November, far exceeding the market estimate of 45,000.

However, the unemployment rate came in at 4.6%, above the market expectation (4.5%), hitting the highest level since September 2021, leaving mixed signals about the local labor market.

This was seen locally as a factor that could reduce the likelihood of additional rate cuts by the U.S. central bank (Fed). According to the Chicago Mercantile Exchange (CME) FedWatch tool, the probability that the Fed will cut rates further in January next year was reflected at 24.4%.

U.S. Treasury yields slipped slightly. The yield on the policy-sensitive U.S. 2-year Treasury fell about 0.03 percentage points to 3.48%, and the 10-year Treasury yield fell about 0.03 percentage points to 4.15%.

International oil prices fell to their lowest level since February 2021, when COVID-19 was spreading, as reports indicated progress in peace talks between Ukraine and Russia. Markets expect that Russian crude could be supplied after a deal is reached.

On the New York Mercantile Exchange, West Texas Intermediate (WTI) fell 2.73% (US$1.55) to US$55.27 a barrel. On the London ICE futures exchange, Brent crude fell 2.71% (US$1.64) to US$58.92 a barrel.

Energy-related stocks underperformed. Major oil company ExxonMobil closed at US$114.68, down 2.62% (US$3.08) from the previous trading day. Oil major Chevron closed at US$146.75, down 2.04% (US$3.05).

Tesla hit an all-time high that day. Tesla closed at US$489.88 per share, up 3.07% from the previous trading day. Intraday, it rose as high as US$490.47. Tesla's stock previously hit a record closing high of US$479.86 on December 17 last year, but earlier this year it plunged 36% in the first quarter as CEO Elon Musk became deeply involved in politics, including leading the Government Efficiency Department of the Donald Trump administration.

Analysts say Musk's statement on the 15th that a robo-taxi pilot run was being conducted in a fully unmanned state served as a catalyst for the recent stock rise.

No Jeong-dong, Hankyung.com reporter dong2@hankyung.com