The Dow Jones New York Stock Exchange closed higher on Tuesday (Aug. 29), while the S&P 500 and the Nasdaq each closed more than 1% higher after US job openings fell for the third straight month. Factors driving expectations that the US Federal Reserve (Fed) will stop raising interest rates.
The Dow Jones Industrial Average closed at 34,852.67 points, an increase of 292.69 points, or +0.85%, the S&P 500 closed at 4,497.63 points, an increase of 64.32 points or +1.45%, and the Nasdaq Index closed at 13,943.76 points, an increase of 238.63 points or +1.74%.
The Labor Department’s Bureau of Labor Statistics released its latest job openings and labor turnover survey (JOLTS), showing job openings dropped 338,000 to a seasonally adjusted 8.827 million in July. which is the lowest level since June 2021 and below analyst expectations of 9.465 million positions.
The number of job openings that the Fed is interested in. As a gauge of tightness in the labor market, which is an important factor in determining monetary policy and the Fed’s interest rates. It fell for the third straight month and stayed below 9 million jobs for the first time since 2021.
The latest data from CME Group’s FedWatch Tool indicates investors are 87% weighing in on the Fed holding interest rates between 5.25 and 5.50 percent at its September meeting. and weighs 54% that the Fed will hold interest rates at those levels at its November meeting.
technology stocks These are growth stocks and are sensitive to interest rates. rising strong After US Treasury yields slowed. India shares rose 4.16%, Alphabet shares rose 2.72%, Microsoft shares rose 1.44%, Meta Platform shares rose 2.66%, Tesla shares rose 7.7%.
Best Buy, the US electronics retailer, rose 3.8% after it posted second-quarter 2023 earnings per share of $1.22, above analysts’ expectations of $1.06.
Investors keep an eye on US inflation data and nonfarm payrolls this week. To assess the direction of the Fed’s interest rates. The US will release its personal consumption expenditure (PCE) price index on Thursday. Analysts expect the PCE to rise 3.3% in July from 3.0% in June.
The US Labor Department will release August nonfarm payrolls figures on Friday. While analysts expected Employment numbers rose by 170,000 in August. after adding 187,000 jobs in July The unemployment rate in August is expected to remain stable at 3.5%.
2023-08-29 23:36:48
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