Stocks closed higher Tuesday as investors cheered some bad-news-is-good-news jobs data. Sentiment also got a lift from an outsized rally in tech stocks that was fueled by declining Treasury yields and a round of bargain hunting.
Shortly after the opening bell rang, the Bureau of Labor Statistics said job openings fell by 338,000 in July to 8.8 million – their lowest level since March 2021. Professional and business services saw the biggest decline in job openings (-198,000), while the information field experienced the largest increase (+101,000). Meanwhile, the number of people quitting their jobs fell to 3.5 million from 3.8 million in June.
The Federal Reserve has consistently expressed concern that a stubbornly tight labor market is working at odds with its efforts to bring down inflation, so today's data is welcome news. Indeed, futures traders are now pricing in an 87% chance the central bank will pause rate hikes at its September meeting – up from yesterday's 78%, according to CME Group. Meanwhile, the probability of a rate hike at the Fed's November meeting dropped to 45% from Monday's 51%.
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.
Investors will get another reading on the labor market this Friday with the release of the August nonfarm payrolls report. "Investors should expect a softening labor report this Friday, further cementing the thesis that the Fed is getting close to finishing its tightening cycle," says Jeffrey Roach, chief economist for LPL Financial.
Also on today's economic calendar, data from The Conference Board showed its consumer confidence index fell to 106.1 in August from July's downwardly revised reading of 114.0. This marked the first decline for the index in two months. "Write-in responses showed that consumers were once again preoccupied with rising prices in general, and for groceries and gasoline in particular," said Dana Peterson, chief economist at The Conference Board, in the report.
Coinbase, Bitcoin jump on favorable court order
In single-stock news, Coinbase Global (COIN) surged 14.9% today after a federal appeals court in Washington D.C. overturned the Securities and Exchange Commission's (SEC) attempt to block Grayscale Investments' application for a spot bitcoin exchange-traded fund (ETF). Judge Neomi Rao said the SEC's decision to approve two bitcoin future ETFs but reject the application for the spot market fund was "arbitrary and capricious."
The order "does not convert the Grayscale Bitcoin Trust (GBTC, +17.0%) product into an ETF immediately, but gives a fair basis for Grayscale to be treated in line with other Bitcoin ETF applicants," says Gautam Chhugani, senior analyst of Global Digital Assets at Bernstein.
Other bitcoin-related stocks got a lift on the news, too, including Robinhood Markets (HOOD, +4.5%) and MicroStrategy (MSTR, +10.8%). Bitcoin, for its part, jumped more than 7%.
As for the major market indexes, the tech-heavy Nasdaq Composite soared 1.7% to 13,943, the broader S&P 500 gained 1.5% to 4,497, and the blue chip Dow Jones Industrial Average rose 0.9% to 34,852.
Related content
-
Stocks Close Mixed to Start Fed Week: Stock Market TodayNews of an EU-U.S. trade deal was met with muted reaction from market participants who are looking ahead to a jam-packed week.
-
Where to Put Your Savings Before Rate Cuts HitSavers can still access higher savings rates. However, with inflation rising and potential rate cuts looming, you have a tighter window to capitalize.
-
Are Buffett and Berkshire About to Bail on Kraft Heinz Stock?Warren Buffett and Berkshire Hathaway own a lot of Kraft Heinz stock, so what happens when they decide to sell KHC?
-
How the Stock Market Performed in the First 6 Months of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
Stock Market Today: Stocks Step Back From New HighsInvestors, traders and speculators continue the low-volume summer grind against now-familiar uncertainties.
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have TodayBerkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
Stock Market Today: Markets Chop Up More Trump ThreatsStocks are grinding to new highs on light summer volume, and bitcoin is only getting bigger.
-
If You'd Put $1,000 Into Procter & Gamble Stock 20 Years Ago, Here's What You'd Have TodayProcter & Gamble stock is a dependable dividend grower, but a disappointing long-term holding.
-
The Riskiest S&P 500 Stocks Right NowBuyer beware: These are five of the riskiest stocks in the S&P 500 at the moment, based on one measure of volatility.
-
Stock Market Today: Markets Discount Another U.S. DowngradeAfter Friday's closing bell, Moody's followed Standard & Poor's and Fitch and cut its rating on U.S. government debt.
