HPE - Stocks Surge On Dismal Jobs Data Rate Hike Fears Ease: What's Driving Markets Tuesday? | Benzinga
Midday trading on Tuesday saw a rally in stocks as investors bet the Federal Reserve would hold off on raising interest rates amid the latest weaker-than-expected economic data.
The JOLTs report showed that in July there were 8.8 million job openings, down 338,000 from June and far lower than the 9.465 million openings predicted by economists.
Similarly, August’s reading of 106.1 on the Conference Board’s consumer confidence index was the lowest since February 2021 and significantly lower than the 117.1 that was expected by experts.
The dollar dropped, U.S. Treasury yields declined, and stocks rose across the board as a result of the negative economic news.
The market-implied probability of a Fed rate hike in September plummeted from 22% to as low as 13%. Markets also reduced the likelihood of a rate hike by November from 66% to 49%, according to the CME Group Fed Watch tool.
Among mega-cap names, Tesla Inc. (NASDAQ:TSLA) soared over 6% and NVIDIA Corp. (NASDAQ:NVDA) gained over 4%.
Cues From Tuesday's Trading:
The S&P 500 rose 1.3%, on track for its third straight session of gains. The Dow rose 0.6%, breaking above its 50-day moving average.
Tech stocks outperformed with the Nasdaq 100 index rising nearly 2%, on track for its strongest session since the end of May.
The Russell 2000 rose 1.3%, ...