Noor Trends News, Technical Analysis, Educational Tools and Recommendations
In an interview conducted by Kuwait Television, Mohamed Hashad, Head of Research and Development at Noor Capital and a member of the American Association of Technical Analysts, commented and analyzed the performance of key assets in the financial markets.
How do we understand the reaction of U.S. indices after the release of U.S. jobs data last Friday?
When we observe the U.S. market’s reaction following the jobs data released last Friday, we realize the importance of this data in determining the future path of the economy over the coming months. The U.S. economy added 142,000 jobs in August, a figure significantly below the expectations of 161,000 jobs. This hurt the performance of the U.S. market. We see that the leading indices of the U.S. market dropped sharply. The S&P 500, the broadest index, lost about 4.3% of its value, marking its worst performance since March 2023. The Nasdaq Composite, which is dominated by technology sectors, also recorded losses of 4.5%. Additionally, the Dow Jones Industrial Average posted losses of 2.9%. These losses extended to major stocks, such as Apple, which lost approximately $249 billion in market value, along with other stock losses.
ًe noticed a statement by the U.S. Treasury Secretary that the economy remains strong and is on the right track toward a soft landing, according to her. What are the key indicators that point to this soft landing mentioned by the U.S. Treasury Secretary?
When discussing a soft landing, we must focus on some key indicators that suggest the U.S. economy is still stable and far from a severe recession. Yes, there has been a significant decline in U.S. job data, but in my opinion, this slowdown is natural, and we should not rely on just one month’s data. Janet Yellen stated that what was once known after the reopening of the economy as the employment frenzy has now subsided. I believe that the U.S. economy remains stable and strong, and the slowdown in hiring is normal and does not indicate any major layoffs in the near term.
What are your expectations for the fourth quarter of the year?
I believe that U.S. stocks may experience significant volatility during the fourth quarter of this year, especially with the upcoming U.S. elections. Volatility will increase based on polling results and campaign expectations. There is no doubt that the U.S. election issue will heighten volatility, particularly since tax policies, crises, and new economic policies will significantly impact the stock market.
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