© 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 ended mixed on Tuesday after new jobs data bolstered speculation that the U.S. Federal Reserve will cut interest rates as early as March.
Wall Street's most valuable companies rose as Treasury yields fell to multi-month lows. Nvidia and Apple (NASDAQ:) rose more than 2%, while Amazon.com (NASDAQ:) and Tesla (NASDAQ:) rose more than 1%.
Most industry indexes ended in the red after data showed U.S. job openings fell to their lowest level since early 2021 in October, suggesting the labor market is easing.
“As interest rates rise and demand weakens, companies are restricting job openings, which is essentially what the Fed wants,” said Sam Stovall, chief investment strategist at CFRA Research in New York.
“The Fed is probably done raising rates, and the only open question is when it will start cutting,” Stovall said.
Another report showed that activity in the U.S. services sector increased in November.
The S&P 500 fell 0.06% to end the session at 4,567.18 points.
The Nasdaq gained 0.31% to 14,229.91 points, while it fell 0.22% to 36,124.56 points.
The small-cap index fell 1.4%, ending a four-day winning streak.
Volume on U.S. exchanges was relatively high, with 11.9 billion shares traded, compared with an average of 10.6 billion shares over the past 20 sessions.
Of the 11 S&P 500 sector indices, eight fell, led by energy with a loss of 1.7%, followed by a loss of 1.37% in materials.
U.S. stock trading was mixed this week after the S&P 500 rose nearly 9% in November. The index hit a four-month intraday high on Friday.
Stock market investors widely expect the Fed to leave interest rates unchanged at its meeting next week. According to CME Group's (NASDAQ:) FedWatch tool, interest rate futures also indicate a 65% chance of a rate cut by the Fed's March meeting.
On Friday, the broader nonfarm payrolls report for November will provide more clarity on the state of the labor market.
Global markets will see greater volatility in 2024 as the Fed cuts interest rates less frequently than futures markets are pricing in, BlackRock (NYSE:) Investment Institute strategists predicted in a panel discussion.Take-Two (NASDAQ:) Interactive Software fell 0.5% after the release of a trailer for the latest installment in the best-selling video game series “Grand Theft Auto.”
CVS Health (NYSE:) rose 3.7% after forecasting 2024 revenue above Wall Street estimates, as the insurer expects to benefit from its expansion into the healthcare sector.
In the S&P 500, declining stocks outnumbered advancing stocks by a ratio of 4.5 to one.
The S&P 500 recorded 15 new highs and no new lows; The Nasdaq recorded 83 new highs and 69 new lows.
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