[New York Stock Market] Rise Despite Weak Chinese Economic Indicators... Nasdaq Up 0.62%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Major indices on the U.S. New York stock market closed slightly higher on the 15th (local time) despite weak economic indicators. However, international oil prices plunged amid growing concerns over China's slowing growth.

On the day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 33,912.44, up 151.39 points (0.45%) from the previous session. The S&P 500, centered on large-cap stocks, rose 16.99 points (0.40%) to 4,297.14, and the tech-heavy Nasdaq index closed up 80.87 points (0.62%) at 13,128.05.

By sector, consumer staples, communication services, and consumer discretionary stocks rose. The energy and financial sectors underperformed. Disney closed up 2.22% after activist investor Daniel Loeb's Third Point acquired a stake in Disney and demanded the spinoff of the sports network ESPN.

The stock price of Bed Bath & Beyond, a representative meme stock, soared more than 23% that day. Tesla rose more than 3% following remarks from CEO Elon Musk that cumulative electric vehicle production surpassed 3 million units.

Unity Software fell 7.13% after news that the board rejected AppLovin's offer to acquire the company at $58.85 per share. Warner Bros. Discovery closed down 4.09% after reports that HBO Max staff would be cut to reduce costs following the merger.

Investors focused on concerns over slowing growth due to weak Chinese economic data, U.S. economic indicators, and movements in Treasury yields.

China's industrial production in July increased 3.8% year-on-year, falling short of market expectations of 4.3%. July retail sales rose only 2.7% year-on-year, far below the forecast of 5%. Along with this, the People's Bank of China lowered the Medium-term Lending Facility (MLF) and reverse repurchase agreement (reverse repo) rates, heightening concerns about the Chinese economy.

Typically, China's rate cuts have been positive for the New York stock market, but with growing worries about China's economic growth, investors are paying closer attention to the potential global economic impact. The market is awaiting housing data such as housing starts and mortgage applications, as well as retail sales, industrial production, and the Redbook index to be released this week. Retailers like Walmart, Target, and Home Depot are also set to report earnings.

U.S. economic data released that day was also disappointing. The Empire State Manufacturing Index for August, compiled by the New York Federal Reserve, fell to -31.3 from 11.2 the previous month, indicating contraction. The drop of 42.4 points was the second largest on record.

In the New York bond market, the yield on the U.S. 10-year Treasury note fell to the 2.8% range. The decline in Treasury yields indicates increased demand for safe-haven government bonds, pushing bond prices higher.

Solita Marcelli, Chief Investment Officer for the Americas at UBS Global Wealth Management, said, "I would warn investors not to chase the rally," adding, "There is a significant risk that the Fed will have to raise rates more than expected, which will increase downside risks to growth."

The disappointing indicators also dealt a direct blow to international oil prices. On the New York Mercantile Exchange (NYMEX), September delivery West Texas Intermediate (WTI) crude oil closed at $89.41 per barrel, down 2.9% ($2.68) from the previous trading day.

This is the lowest closing price since $89.01 on the 5th. WTI even touched $86.82 per barrel intraday, marking its lowest level in over six months since February 3. Brent crude on the London ICE Futures Exchange also closed down 3.1% at $95.10 per barrel.

International gold prices also fell below the $1,800 per ounce mark amid China's economic weakness and a strong U.S. dollar. On the New York Commodity Exchange, December delivery gold closed down 1% ($17.40) at $1,798.10 per ounce.