US close Dow Jones reverses losses

Dow Jones up 0.36%, S&P 500 up 0.15%, Nasdaq up 0.17%. Manufacturing data, job openings, and Treasury yields in focus.

The stock market closed with the Dow Jones Industrial Average up 0.36% at 38,711.29, the S&P 500 advancing 0.15% to 5,291.34, and the Nasdaq Composite finishing 0.17% higher at 16,857.05. This marked a significant increase of 140.26 points for the Dow, reversing previous losses.

Market focus remained on weak manufacturing data, with investors eager to see if growth can be sustained long enough for the Federal Reserve to consider further cuts to its base interest rate in response to declining inflation rates.

Additionally, attention was on the yield of the ten-year Treasury note, which decreased by more than six basis points to 4.331%, while the two-year counterpart was down nearly three basis points at 4.787%.

In terms of macroeconomic news, new orders for US manufactured goods rose by 0.7% month-on-month to $588.2 billion in April, in line with expectations. Durable goods orders increased by 0.6%, while orders in nondurable goods industries rose by 0.8%.

On a different note, US companies advertised fewer job openings in April, potentially indicating a cooling demand for labor. The number of job openings declined by 3.5% month-on-month to around 8.06 million, lower than the consensus estimate. Additionally, the number of 'quits' increased by 2.9% to 3.507 million, remaining unchanged as a proportion of all separations at 2.2%.