Overnight US Stocks | "Mini Non-Farm Payrolls" Intensify Concerns about Labor Market Slowdown, S&P 500 Index Declines for the Third Consecutive Trading Day

According to Zhitong Finance, on Thursday, the three major indices showed mixed movements, with the S&P 500 index falling for the third consecutive trading day. The "mini non-farm" report recorded the smallest increase in three years, intensifying investors' concerns about a slowdown in the labor market.

[US Stocks] At the time of publication, the Dow Jones fell 219.22 points, or 0.54%, to 40,755.75 points; the Nasdaq rose 43.37 points, or 0.25%, to 17,127.66 points; the S&P 500 index fell 16.66 points, or 0.30%, to 5,503.41 points.

[European Stocks] The German DAX30 index fell 176.22 points, or 0.94%, to 18,580.25 points; the UK's FTSE 100 index fell 27.99 points, or 0.34%, to 8,270.47 points; the French CAC40 index fell 74.13 points, or 0.98%, to 7,500.97 points; the Euro Stoxx 50 index fell 62.97 points, or 1.28%, to 4,849.55 points; the Spanish IBEX35 index fell 63.25 points, or 0.56%, to 11,215.95 points; the Italian FTSE MIB index fell 183.43 points, or 0.54%, to 33,680.00 points.

[Asia-Pacific Stock Markets] The Nikkei 225 index fell by 1.05%, the Indonesia Jakarta Composite Index rose by 0.11%, and the Vietnam VN30 index fell by 0.66%.

[Gold] COMEX December gold futures rose 0.75% to $2,545 per ounce at the close; COMEX December silver futures rose 1.92% to $29.105 per ounce at the close.

[Cryptocurrency] Bitcoin fell by over 3% to $56,025.85, while Ethereum fell by over 3.4% to $2,366.67.

[Crude Oil] The price of WTI crude oil futures for October delivery on the New York Mercantile Exchange fell by $0.05, or 0.07%, to close at $69.15 per barrel. Brent crude oil futures for November delivery fell by $0.01, or over 0.01%, to $72.69 per barrel.

[Metals] Most London metals fell, with nickel down by 0.78%, zinc down by 2.6%, aluminum down by 0.65%, and copper up by 1.61%.

[Macro News]

Less than 100,000! "Mini non-farm" records smallest increase in three years. The number of new jobs added by U.S. companies last month was the lowest since early 2021, further confirming a shift towards slow growth in the labor market. ADP data shows that private companies added 99,000 jobs in August, with the previous month's increase revised downward. The latest data came in below all expectations. Nela Richardson, chief economist at ADP, said, "After two years of strong growth, the labor market is now seeing hiring rates below normal levels. Wage growth, after a sharp slowdown post-pandemic, is stabilizing." Companies are scaling back hiring to cope with high costs and interest rates. The latest data adds to evidence of a slowdown in labor demand, with Federal Reserve officials expressing more concern about labor market risks compared to inflation. As price pressures ease from the peak of the pandemic, markets expect policymakers to begin easing this month Another report released on Thursday showed that as of August, the recruitment plans of American companies had decreased by 41% compared to the same period in 2023. The announced layoff plans decreased by 3.7%.

The number of layoffs announced in the United States in August is the highest in five months, and the technology industry is the hardest hit. Data on Thursday showed that due to uncertain economic growth prospects and ongoing cost concerns, the number of layoffs announced by U.S. employers in August was the highest in five months, with the technology industry being the hardest hit. Employment consulting firm Challenger stated that last month, companies announced layoffs of 75,891 people, roughly three times that of July, marking the largest monthly increase in a year. However, the number of layoffs announced so far this year has decreased by 3.7%. "The surge in layoffs in August reflects increased economic uncertainty and changes in market dynamics. Companies are facing various pressures, from rising operating costs to concerns about potential economic slowdown, forcing them to make difficult decisions in labor management," said Andrew Challenger, Vice President of Challenger, in a statement. More than half of the layoffs announced in August came from the technology industry, totaling 39,563 people, a significant increase from about 6,000 in July, marking the highest since January 2023. The healthcare industry announced the second highest number of layoffs, at 6,158 people.

ISM: U.S. service sector activity expands for the second consecutive month in August. The Institute for Supply Management (ISM) stated that economic activity in the service sector expanded for the second consecutive month in August. The services PMI recorded 51.5, with 6 out of 8 months in 2024 showing expansion, marking the 48th expansion in 51 months. Steve Miller, Chairman of the ISM Services Business Survey Committee, stated, "The growth in the service sector PMI in August is due to all sub-indexes (business activity, new orders, employment, and supplier deliveries) being close to or above 50. The supplier deliveries index was in a mild contraction zone in August. Many industries mentioned slow to moderate growth, with continued high cost and rate pressures believed to have a negative impact on business performance, leading to soft sales and traffic. Although the inventory index rose by 3.1 points in August, entering the expansion zone, many respondents indicated that companies are still actively managing inventory.

U.S. Treasury Secretary Yellen claims: Labor market is healthy, consumer and investment spending is robust. U.S. Treasury Secretary Janet Yellen stated that the U.S. labor market remains healthy and described consumer and investment spending as "very robust," despite recent data suggesting some cooling. "The labor market has become less tight over the past year or so, but by historical standards, our current unemployment rate should be considered very low. My judgment is that we have a good, healthy labor market that can continue to create job opportunities." Just hours before she made the remarks, ADP data showed that U.S. business added jobs at the lowest level since 2021. The U.S. unemployment rate rose to 4.3% in July, up nearly one percentage point from the beginning of last year. Job vacancies in the U.S. in July also fell to the lowest level since early 2021. These numbers have heightened concerns about a potential economic downturn. Federal Reserve policymakers have made it clear that they are not seeking further softening in the labor market, and it is widely expected that the Fed will initiate rate cuts at its next monetary policy meeting later this month As former Federal Reserve Chair Yellen declined to comment on when the Fed will cut interest rates, but pointed out that Powell did say last month that the time to cut rates has come. She noted that mortgage rates have already fallen in anticipation of the Fed's loose policy and also indicated that they may fall further.

OPEC+ is reportedly reaching an agreement to delay production increase plans. According to some representatives who declined to be named, OPEC+'s main members will not increase daily production by 180,000 barrels as planned in October, deciding to postpone the production increase by two months. Under the leadership of Saudi Arabia and Russia, OPEC+ reached a consensus in June on a roadmap to gradually restore supply. However, after the plan was announced, the organization has been wavering, repeatedly emphasizing that it may "pause or reverse" the production increase if necessary. Following the announcement of the decision to delay the production increase, international oil prices rose, with both U.S. and Brent crude oil prices rising by more than 1.2%.

ChatGPT Enterprise Edition surpasses 1 million paying users. OpenAI announced on Thursday that the number of paying users for ChatGPT Enterprise Edition has exceeded 1 million, indicating that the demand for its chatbot among enterprises is still growing. This figure includes the total number of users registered for ChatGPT Team and Enterprise services, which are aimed at companies, as well as university personnel using ChatGPT Edu products. In April, OpenAI stated that it had 600,000 enterprise ChatGPT users. A year ago, OpenAI launched the Enterprise Edition of ChatGPT with additional features and privacy protection to increase revenue and offset the high costs of developing AI products. In January, the company introduced ChatGPT Team for small businesses. Although the number of paying enterprise users at OpenAI has increased significantly this year, it is unclear how many new companies have registered. OpenAI stated that nearly half of its enterprise users are located in the United States. Outside the U.S., the company's chatbot is most popular among enterprise users in Germany, Japan, and the United Kingdom.

[Stock News]

Advocate General of the EU Court: Google (GOOGL.US) refusing third-party access to Android Auto may violate competition law. An advisor to the EU's highest court agreed with the opinion of Italy's antitrust authority, stating that Google, a subsidiary of Alphabet (GOOGL.US, GOOG.US), refusing to allow an app developed by Enel X to access its Android Auto platform may have violated competition rules in the region. In September 2018, Italian energy company Enel X requested Google to make its electric vehicle charging app, Juice Pass, compatible with the Android Auto in-car system, but Google refused, stating that media and messaging apps are the only third-party apps compatible with Android Auto in the absence of specific templates. According to a press release from the EU Court, Google also rejected this request citing security concerns and the need for new template resources. Advocate General of the EU Court, Laila Medina, stated, "Google's refusal to provide third-party access to the Android Auto platform may have violated competition rules." Former NVIDIA (NVDA.US) Executive Joins AMD (AMD.US) as Senior Vice President of Global AI Market. AMD previously announced that Keith Strier has joined the company as Senior Vice President of Global Artificial Intelligence Market. Keith Strier, who previously served as Vice President of Global AI Programs at NVIDIA (NVDA.US), will be responsible for expanding AMD's global AI capabilities and accelerating strategic AI collaborations in the public and private sectors. He will report to AMD's Executive Vice President and Chief Technology Officer Mark Papermaster. AMD CEO Lisa Su stated, "As a trusted advisor to nations and companies, Keith brings a wealth of experience and a strong track record that will help accelerate the adoption of AMD-driven solutions to meet the growing demand for artificial intelligence."

【Major Bank Ratings】

Bank of America Securities: Maintains Buy rating on Apple (AAPL.US), with a target price of $256