Market Optimism Runs High as Jobs Data and Fed Speak Take Center Stage
The US stock market hovered near record highs on Tuesday, driven by fresh jobs data and anticipation of new comments from Federal Reserve policymakers. The S&P 500 and Nasdaq Composite indexes traded flat, while the Dow Jones Industrial Average slipped 0.1%.
Job Openings Surge, Boosting Rate Cut Hopes
According to the Bureau of Labor Statistics, job openings rose by 372,000 to 7.74 million in October, exceeding estimates of 7.52 million. While hires decreased, the quits rate, a measure of worker confidence, climbed to 2.1% from 1.9% in September. This data sets the stage for Friday’s crucial monthly US payrolls report.
Fed Watch: Rate Cut Odds Increase
Traders now expect a 74% chance of a quarter-point interest rate cut at the Fed’s December 18 meeting, up from 62% the previous day. Fed policymakers Austan Goolsbee and Adriana Kugler will speak later today, followed by Fed Chair Jerome Powell’s panel discussion on Wednesday.
Corporate Headlines: Tesla and US Steel Make Waves
Tesla’s stock fell after shipments of its China-built models declined, casting doubt on sales targets. Meanwhile, CEO Elon Musk’s $56 billion pay deal was rejected by a judge. US Steel shares plummeted 8% after President-elect Donald Trump vowed to “block” its $15 billion takeover by Japan’s Nippon Steel.
Global Economic Outlook: Bank of America Weighs In
Bank of America economists predict the US economy will grow at an annualized rate of 2.4% in 2025, higher than current forecasts. While uncertainties surround President-elect Trump’s economic policies, the US is well-positioned to weather any economic storms.
Europe in Focus: Political Turmoil and Snap Elections
Political instability in France and Germany has Wall Street on high alert. With the French government on the brink of collapse and Germany facing snap elections, investors are closely watching the two EU pillars.
What’s Ahead: Key Data and Earnings Reports
This week’s economic data includes the Job Openings and Labor Turnover Survey, culminating in Friday’s monthly US payrolls report. Notable earnings reports include Box, Marvell, Okta, Pure Storage, and Salesforce.
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