Quick brief – US JOLTs disappoint, Wall Street trembles
US job openings fall to the lowest since April 2021
Bets for a 50bps rate cut increase
Wall Street moves between gains and loses
US JOLTs job openings retreated to the lowest in three and a half years of 7.76 million in July compared to the forecast of 8.09 million expected and June’s negatively revised reading of 7.91 million.
The data followed a negative surprise in the ISM manufacturing PMI, with investors further raising the odds for a double rate cut to 45% on concerns the economy might be on the brink of a downturn in the face of monetary tightening.
Wall Street continued to trade with some caution near Tuesday’s lows despite showing some appetite for recovery as Treasury yields declined. The Dow Jones, which is less sensitive to tech stocks, rose initially as high as $41,171 after finding support near a familiar support trendline at $40,765, though it soon came under pressure near its 20-period simple moving averages (SMA), erasing most of its gains.
The question that arises now is whether Friday’s nonfarm payrolls will provide a helping hand to stock markets or further worsen recession fears, squeezing the price below $40,765 and towards the 50-period SMA at $40,400.
