Updated at: 31 Aug 2023 7:50 AM
Home World stock market Stock market gains strength thanks to JOLTS hiring data opening up a significant change The stock market ended Tuesday’s session in a jubilant state, rising sharply thanks to weaker-than-expected labor market data. But investors should be cautious as there are more important economic data ahead.
The Nasdaq composite index was the most impressive among the main stock market indices, rising 1.7%. This means that as of now, it has risen nearly 3% in the week. More importantly, this technology-oriented index has rebounded and is above its 50-day MA. It now only needs to keep the price above the important technical mark.
The S&P 500 also rose higher, up 1.5% and surpassing its 50-day MA. The benchmark index is up more than 17% for the year as stocks seek to regain what they have lost so far.
The Dow Jones industrial average was the weakest of the main indices, although it still rose 0.9% and is now above its main and short-term MAs. Verizon Communications (VZ) and Apple (AAPL) were the strongest performers on this blue-chip index.
The small-cap index also created an impressive boost, with the Russell 2000 rising 1.4%. But it was the growth stocks that inflicted the most painful blow on the bears, with the Innovator IBD 50 ETF (FFTY) soaring 2.3%.
JOLTS hiring data opens up new prospects for the stock market. The release of the latest Job Openings and Labor Turnover Survey (JOLTS) results from the U.S. Bureau of Labor Statistics at the start of Tuesday boosted the market’s rise.
Job openings fell to 8.8 million in July, much lower than expected at 9.5 million. The number of job postings for June was also revised down to 9.165 million. Currently, this number has returned to the level of summer 2021.
Treasury bond yields closed significantly lower. The yield on the 10-year bond fell 9 basis points to 4.12%, while the yield on the 2-year bond fell 12 basis points to 4.89%. The yield curve narrowed but remained inverted.
According to CME FedWatch, the probability of a 0.25 percentage point or higher interest rate hike in November has now fallen below 50%.
Craig Erlam, senior market analyst at Oanda, said in a report to clients: “From the Fed’s perspective, this week got off to a promising start with the JOLTS hiring report coming in much weaker than expected, along with downward revisions from the previous month.” “The Fed needs to see a softer labor market to be confident that price pressures are not only easing but significantly and sustainably, and this report is a step in the right direction.”
The positive reaction on the indices means that IBD’s market trend has now shifted from “correction” to “confirmed uptrend”. We recommend a holding ratio of 20% - 40%, up from 0% - 20%. But investors should increase their holding ratio at a moderate pace.
However, there are still many important economic data to be released this week, including the latest Personal Consumption Expenditures (PCE) index on Thursday and the U.S. non-farm payroll report on Friday.
Tesla stock boosts electric vehicle sector.
All S&P 500 stocks closed in positive territory, with sectors such as communications services, consumer staples and technology performing best. The defensive utilities and energy sectors achieved the smallest gains.
Once again, IBD’s industry group relative performance provided a deeper insight into today’s stock market performance.
Education software, consumer electronics retailers and database software were among the top groups in Tuesday’s session. Auto manufacturers also had a trading session
Home World stock market Stock market gains strength thanks to JOLTS hiring data opening up a significant change The stock market ended Tuesday’s session in a jubilant state, rising sharply thanks to weaker-than-expected labor market data. But investors should be cautious as there are more important economic data ahead.
The Nasdaq composite index was the most impressive among the main stock market indices, rising 1.7%. This means that as of now, it has risen nearly 3% in the week. More importantly, this technology-oriented index has rebounded and is above its 50-day MA. It now only needs to keep the price above the important technical mark.
The S&P 500 also rose higher, up 1.5% and surpassing its 50-day MA. The benchmark index is up more than 17% for the year as stocks seek to regain what they have lost so far.
The Dow Jones industrial average was the weakest of the main indices, although it still rose 0.9% and is now above its main and short-term MAs. Verizon Communications (VZ) and Apple (AAPL) were the strongest performers on this blue-chip index.
The small-cap index also created an impressive boost, with the Russell 2000 rising 1.4%. But it was the growth stocks that inflicted the most painful blow on the bears, with the Innovator IBD 50 ETF (FFTY) soaring 2.3%.
JOLTS hiring data opens up new prospects for the stock market. The release of the latest Job Openings and Labor Turnover Survey (JOLTS) results from the U.S. Bureau of Labor Statistics at the start of Tuesday boosted the market’s rise.
Job openings fell to 8.8 million in July, much lower than expected at 9.5 million. The number of job postings for June was also revised down to 9.165 million. Currently, this number has returned to the level of summer 2021.
Treasury bond yields closed significantly lower. The yield on the 10-year bond fell 9 basis points to 4.12%, while the yield on the 2-year bond fell 12 basis points to 4.89%. The yield curve narrowed but remained inverted.
According to CME FedWatch, the probability of a 0.25 percentage point or higher interest rate hike in November has now fallen below 50%.
Craig Erlam, senior market analyst at Oanda, said in a report to clients: “From the Fed’s perspective, this week got off to a promising start with the JOLTS hiring report coming in much weaker than expected, along with downward revisions from the previous month.” “The Fed needs to see a softer labor market to be confident that price pressures are not only easing but significantly and sustainably, and this report is a step in the right direction.”
The positive reaction on the indices means that IBD’s market trend has now shifted from “correction” to “confirmed uptrend”. We recommend a holding ratio of 20% - 40%, up from 0% - 20%. But investors should increase their holding ratio at a moderate pace.
However, there are still many important economic data to be released this week, including the latest Personal Consumption Expenditures (PCE) index on Thursday and the U.S. non-farm payroll report on Friday.
Tesla stock boosts electric vehicle sector.
All S&P 500 stocks closed in positive territory, with sectors such as communications services, consumer staples and technology performing best. The defensive utilities and energy sectors achieved the smallest gains.
Once again, IBD’s industry group relative performance provided a deeper insight into today’s stock market performance.
Education software, consumer electronics retailers and database software were among the top groups in Tuesday’s session. Auto manufacturers also had a trading session
