Stocks erased early gains to end lower Tuesday after economic data signaled continued strength in the labor market.
All three major indexes opened in positive territory today but slipped into the red after the Labor Department said there were 10.7 million job openings in the U.S. in September – up from 10.3 million in August.
The report comes as the Federal Reserve kicked off its two-day policy meeting, with the central bank expected to issue its fourth straight 75 basis point rate hike tomorrow. (A basis point = 0.01%.) However, what investors really want to know is what the Fed plans to do next on monetary policy – and today's economic news spooked investors into thinking more jumbo-sized rate hikes could be on the horizon.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Momentum was building on expectations for the Fed to downshift their tightening pace in December, but now that call seems like it may have been premature," says Edward Moya, senior market strategist at currency data provider OANDA. "Rates might need to stay higher for longer if the labor market is still healthy and inflation ends up being stickier than markets are initially thinking."
At the close, the blue-chip Dow Jones Industrial Average was off 0.2% at 32,653, the broader S&P 500 Index was 0.4% lower at 3,856, and the tech-heavy Nasdaq Composite was down 0.9% at 10,890.
Midterm Elections and the Stock Market
This week, all eyes will be on tomorrow's Fed decision and Friday's October jobs report, but the midterms aren't far behind. While early voting is already underway, the election will conclude next Tuesday, Nov. 8. "The entire House of Representatives (435 seats), 34 senators, and 36 governors will be determined," says John Lynch, chief investment officer for Comerica Wealth Management. "At stake is control of Congress and potentially the path for legislative policy and regulation for the next two years."
Lynch adds that several polling sites are predicting a "variety of outcomes, further confusing the picture for investors and voters." However, as counterintuitive as it might seem, the results of the midterm elections may not even matter to stock market returns. Read on as we explore why.
-
Stock Market Today: Stocks Rise as Fed Rate Cuts NearThe main indexes closed out the day and week notably higher as excitement swirls ahead of next week's rate cut.
-
Where to Move Your Money Before the Next Fed MeetingTake advantage of high savings rates before the anticipated Fed rate cut next week erodes APYs and lowers returns.
-
Stock Market Today: Stocks Rise as Fed Rate Cuts Near
The main indexes closed out the day and week notably higher as excitement swirls ahead of next week's rate cut.
-
Stock Market Today: Stocks Rise in Choppy Day for MarketsModerna was the worst S&P 500 stock today after the vaccine maker slashed its R&D budget.
-
Will the Fed Cut Rates in September? Here's What Experts PredictThe race is already on to predict the trajectory of future reductions to borrowing costs.
-
Stock Market Today: Stocks Stagger After CPI but Rebound to Post GainsA mixed CPI report had traders recalibrating their rate-cut bets.
-
Mixed August CPI Report Seals September Rate Cut: What the Experts Are SayingCPI A good-but-not great reading on consumer inflation sets up the Fed to reduce rates by a quarter-point at its next meeting.
-
Stock Market Today: Stocks End Mixed Ahead of August CPI ReportSharp losses for blue chip banks JPMorgan and Goldman Sachs pressured the Dow Jones Industrial Average.
-
Stock Market Today: Dow Gains 484 Points in Broad-Market BounceTech stocks were in focus Monday on news Palantir and Dell are two of the S&P 500's newest members.
-
Stock Market Today: Dow Dives 410 Points After August Jobs MissA big slump in tech stocks thanks to Broadcom's post-earnings slide put pressure on the main indexes too.
