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US stocks struggled Wednesday and ended mixed as investors took in lower-than-expected job openings.
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There have been 7.67 million openings in July, the bottom number in over three years.
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Traders see rising odds for steep rate cuts by year-end, per the CME FedWatch tool.
US stocks continued to fall on Wednesday as traders took in additional weak jobs data, fueling fears over the strength of the US economy. All three benchmark indexes ticked lower, while bond yields slumped.
The economy had fewer job openings than expected in July, with employers posting 7.67 million open positions at the top of the month, per the Bureau of Labor Statistics. That is lower than the 7.91 openings recorded in June, and it’s the bottom number of obtainable jobs in over three years.
The brand new job openings data adds to the fears of a slowing economy raised by Tuesday’s manufacturing figures. Yields dropped on Wednesday, extending declines in key government bond yields logged within the prior session. The ten-year Treasury yield fell eight basis points to three.761%.
“Adding further evidence of a decelerating US labor market, for-hire signs sunk to their most anemic level in 42 months,” José Torres, a senior economist at Interactive Brokers, said in a note. “The figure, the lightest since January 2021, is generating optimism that the Fed will provide liquidity relief, but such exuberance is being countered by pessimism concerning economic growth.”
“As Chairman Jerome Powell said recently, further cooling of the job market is unwelcome. But that is strictly what the JOLTS update conveys,” Mark Hamrick, a senior economic analyst at Bankrate, said in a note.
Fears of a recession could possibly be further solidified by a weak jobs report on Friday. Economists expect the US to have added 162,000 jobs last month, which might lower the unemployment rate to 4.2%.
Investors, meanwhile, ramped up their expectations for aggressive rate cuts by year-end. Markets are pricing in an 86% likelihood the Fed will cut rates by 100 basis points or more by the top of the yr, up from just 72% odds on Tuesday, in line with the CME FedWatch tool.
Here’s where US indexes stood on the 4:00 p.m. closing bell on Wednesday:
Here’s what else is occurring:
In commodities, bonds, and crypto:
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Oil futures dropped. West Texas Intermediate crude oil dropped 2% to $68.88 a barrel. Brent crude, the international benchmark, fell 1.9% to $72.38 a barrel.
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Gold was about flat at $2,523.70 an oz.
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The ten-year Treasury yield fell eight basis points to three.761%.
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Bitcoin traded at $58,047.
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