Wall Street stocks end mostly flat as weak jobs data supports rate cut By Reuters
By Chibuike Oguh
NEW YORK (Reuters) -U.S. stocks ended mostly flat on Tuesday following softer-than-expected labor market data that reaffirmed expectations of an interest rate cut by the Federal Reserve.
Data on Tuesday showed that U.S. job openings fell to their lowest level in more than three years in April, signaling an easing in labor market tightness that supported a Fed rate cut this year. The U.S. Treasury yields slipped following the report.
The labor market data was the latest in a string of recent reports that pointed to cooling U.S. economic growth. Data on Monday had shown that U.S. manufacturing activity had slowed for the second straight month in May.
“What we’ve seen in the data so far this week is that it’s been relatively weak, starting with manufacturing PMI and job openings today,” said James St. Aubin, chief investment officer at Sierra Mutual Funds in California.
“That has had a total effect of helping the rally in the bond market; but for the stock market, it’s a double-edged sword because they’re looking for a rate cut announcement, which has a rising probability with weaker data,” St. Aubin added.
Market expectations for a September rate reduction now stand around 65%, versus below 50% last week, according to the CME’s FedWatch tool. The closely watched non-farm payrolls data for May is due on Friday.
According to preliminary data, the S&P 500 gained 7.88 points, or 0.15%, to end at 5,291.26 points, while the Nasdaq Composite gained 28.38 points, or 0.17%, to 16,857.05. The Dow Jones Industrial Average rose 134.72 points, or 0.36%, to 38,705.75.
Oil giants Exxon Mobil (NYSE:) and Chevron (NYSE:) fell as demand concerns weighed on crude prices.
Bath & Body Works (NYSE:) slumped after a lower revision to its quarterly profit forecast. Axos Financial (NYSE:) dropped after Hindenburg Research disclosed a short position in the lender.
Paramount Global fell after the media conglomerate said it was exploring strategic options or a joint venture for its Paramount+ streaming service.
