The US labour market showed signs of a steady slowdown in October, with job openings increasing moderately and layoffs declining, according to the latest Job Openings and Labor Turnover Survey (JOLTS) report released by the Bureau of Labor Statistics on Tuesday. Job openings, a key indicator of labour demand, rose by 372,000 to 7.744 million at the end of October. However, the September figures were revised downward to 7.372 million from the initially reported 7.443 million. Economists polled by Reuters had anticipated 7.475 million vacancies. Labour Market Dynamics While job openings increased, hires dropped by 269,000 to 5.313 million, and layoffs fell by 169,000 to 1.633 million. These figures suggest a gradual cooling of the labour market rather than a sharp contraction. Hurricanes and strikes also impacted October’s labour market data. Rebuilding efforts in storm-affected regions and the resolution of strikes at Boeing and another aerospace company are expected to contribute to a ...
The Nasdaq and the S&P 500 rose on Monday, buoyed by megacap stocks as investors awaited Big Tech results, a US Federal Reserve (Fed) policy decision, and crucial labor numbers this week.
Key Takeaways:
Megacap Stocks Rally: Nvidia, Alphabet, Amazon.com, and Meta Platforms rose between 0.6% and 1.5%, following a recent downturn in megacap tech shares that had pushed major stock indices downward last week.
Market Performance:
- Nasdaq Composite: Up 116.46 points (0.67%) at 17,474.34
- S&P 500: Up 11.18 points (0.20%) at 5,470.28
- Dow Jones Industrial Average: Down 140.72 points (0.35%) at 40,448.62
Sector Gains: The S&P 500 consumer discretionary index led sectoral gains with a 0.9% rise, driven by a 4.4% jump in Tesla shares. Morgan Stanley added Tesla to its US autos list as a "top pick."
Last Week's Market Movement:
- Major US stock indices jumped more than 1% last Friday, buoyed by an encouraging US inflation report and data suggesting a loosening jobs market.
- However, the S&P 500 and the Nasdaq closed the week lower after a disappointing start to tech earnings triggered the steepest one-day slide since 2022 last Wednesday.
Upcoming Earnings: Investors are closely watching earnings from Microsoft, Meta, Apple, and Amazon.com starting on Tuesday to gauge if the AI-led equity rally can continue.
Market Rotation: Investors are considering a rotation into mid and small caps. The Russell 2000 small-cap index was up 0.1% after a three-week winning streak.
Fed Policy Expectations: Hopes are pinned on the Fed signaling a rate cut in September during Wednesday's policy decision. Odds for a 25-basis-point reduction are at 89%, according to the CME's FedWatch. Any hawkish commentary could trigger renewed selling pressure in equities.
Employment Reports: A series of employment reports this week, including non-farm payrolls, will be scrutinized for insights into the labor market.
Crypto Stocks Surge: Coinbase Global, Riot Platforms, and Marathon Digital gained between 2.4% and 3.6% as bitcoin prices jumped to a seven-week high.
Notable Decliners: Abbott Laboratories dropped 4.1% to the bottom of the S&P 500 after being ordered to pay US$495 million in damages due to its formula for premature infants causing a dangerous illness.
Market Breadth: Advancing issues outnumbered decliners by a 1.23-to-one ratio on the NYSE and by a 1.09-to-one ratio on the Nasdaq. The S&P index recorded 15 new 52-week highs and one new low, while the Nasdaq recorded 73 new highs and 29 new lows.
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