- US stocks struggled Wednesday and ended mixed as investors took in lower-than-expected job openings.
- There were 7.67 million openings in July, the lowest number in over three years.
- 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 more 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 end of the month, per the Bureau of Labor Statistics. That's lower than the 7.91 openings recorded in June, and it's the lowest number of available jobs in over three years.
The 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 in the prior session. The 10-year Treasury yield fell eight basis points to 3.761%.
"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 exactly what the JOLTS update conveys," Mark Hamrick, a senior economic analyst at Bankrate, said in a note.
Fears of a recession could be further solidified by a weak jobs report on Friday. Economists expect the US to have added 162,000 jobs last month, which would 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% chance the Fed will cut rates by 100 basis points or more by the end of the year, up from just 72% odds on Tuesday, according to the CME FedWatch tool.
Here's where US indexes stood at the 4:00 p.m. closing bell on Wednesday:
- S&P 500: 5,520.07, down 0.16%
- Dow Jones Industrial Average: 40,974.97, up 0.09% (+38.04 points)
- Nasdaq composite: 17,084.30, down 0.3%
Here's what else is going on:
- Nvidia has seen $437 billion in market cap erased since its second-quarter earnings results.
- Nvidia analysts are watching these key stock levels for further losses as "exhaustion" sets in.
- A cash-strapped region in Argentina has created its own currency as the country struggles through President Javier Milei's economic reforms.
- The stock market could be volatile until the election before resuming its rally to record-highs, according to market vet Ed Yardeni.
In commodities, bonds, and crypto:
- 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.
- Gold was about flat at $2,523.70 an ounce.
- The 10-year Treasury yield fell eight basis points to 3.761%.
- Bitcoin traded at $58,047.