© Reuters. FILE PHOTO: The New York Stock Exchange (NYSE) in New York City, U.S., February 24, 2022. REUTERS/Caitlin Ochs/File Photo
By Noel Randewich and Amruta Khandekar
(Reuters) – Wall Street closed mixed on Tuesday after new jobs data reinforced bets that the U.S. Federal Reserve will cut interest rates as soon as March.
Apple (NASDAQ and other megacaps gained, while consumer staples stocks fell after data showed U.S. job openings fell in October to the lowest level since early 2021, indicating that the labor market was relaxing.
“As interest rates rise and demand slows, companies are withdrawing job offers, which is essentially what the Federal Reserve wants,” said Sam Stovall, chief investment strategist at CFRA Research in New York.
“The Federal Reserve is probably done raising rates and the only remaining question is when they will start cutting rates,” Stovall said.
Another report showed that U.S. service sector activity recovered in November.
According to preliminary data, the S&P 500 lost 1.91 points, or 0.04%, to finish at 4,567.77 points, while the Nasdaq Composite gained 46.91 points, or 0.31%, to 14,232.41 . The Dow Jones Industrial Average fell 74.51 points, or 0.21%, to 36,129.93.
US stock trading this week has been mixed after rallying nearly 9% in November. The index hit a four-month intraday high on Friday.
stock market investors widely expect the Federal Reserve to keep rates unchanged at its meeting next week. Interest rate futures also suggest a 65% chance of a rate cut before the Federal Reserve's March meeting, according to CME Group's (NASDAQ:) FedWatch tool.
On Friday, the more comprehensive nonfarm payrolls report for November will provide greater clarity on the state of the labor market.
Wall Street's most valuable companies rose as Treasury yields fell to multi-month lows. Nvidia (NASDAQ:), Amazon.com (NASDAQ:), Tesla (NASDAQ:), and Apple gained for much of the session.
Global markets will be influenced by greater volatility in 2024 as the Federal Reserve cuts benchmark interest rates fewer times than futures markets are pricing in, BlackRock strategists predicted (NYSE: Investment Institute in a panel discussion.Take-Two (NASDAQ Interactive software fell after a trailer for the latest installment of its best-selling video game franchise “Grand Theft Auto” was released.
CVS Health (NYSE jumped after forecasting 2024 revenue above Wall Street estimates, as the insurer hopes to benefit from its expansion into health services.
