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
-
Stock Market Today: Great Power Affairs Mesmerize MarketsThe U.S. and China are at least talking about talking about tariffs, and investors, traders and speculators are showing a little less fear.
-
Is Walmart Plus Worth It?There are tons of exciting Walmart Plus benefits – but are they worth the $98 annual fee?
-
Coinbase Stock Swings After SEC Drops LawsuitCoinbase stock is bouncing between positive and negative territory Friday on news the SEC is dismissing its lawsuit against the the crypto exchange.
-
Stock Market Today: It's Mostly Onward and Upward for EquitiesThe major U.S. equity indexes were mixed Friday but closed an eventful week for earnings and data modestly higher.
-
Why Coinbase Stock Is Lower After a Blowout Earnings Report
Coinbase stock is tumbling Friday as investors take profits following the crypto platform's impressive fourth-quarter results. Here's what you need to know.
-
Stock Market Today: Stocks Pop on Time-Delayed TariffsAll three major U.S. equity indexes rallied to intraday highs following President Trump's latest trade moves.
-
Why Robinhood Stock Is Soaring After EarningsRobinhood stock is sizzling Thursday after the online trading platform reported impressive fourth-quarter results. Here's what investors need to know.
-
Fed Leaves Rates Unchanged: What the Experts Are SayingFederal Reserve As widely expected, the Federal Open Market Committee took a 'wait-and-see' approach toward borrowing costs.
-
What to Expect From Bitcoin and Other Cryptocurrencies in 2025With help from Donald Trump, the cryptocurrency industry is expanding rapidly. Here's what to expect from bitcoin in 2025.
-
Fed Sees Fewer Rate Cuts in 2025: What the Experts Are Saying
Federal Reserve The Federal Reserve cut interest rates as expected, but the future path of borrowing costs became more opaque.
