US stocks traded mixed on Tuesday as investors processed new jobs data and insights from Federal Reserve policymakers on the future of interest rates.
- The S&P 500 ( ^GSPC ) was flat, holding near record highs.
- The Nasdaq Composite ( ^IXIC ) edged up 0.2% in afternoon trading.
- The Dow Jones Industrial Average ( ^DJI ) reversed earlier gains, slipping 0.1%.
October Job Openings Beat Estimates
The Job Openings and Labor Turnover Survey (JOLTS) showed:
- Job openings rose by 372,000 to 7.74 million, exceeding estimates of 7.52 million.
- Hires decreased, while the quits rate—a measure of worker confidence—increased to 2.1% from 1.9% in September.
This marks the first significant labor market signal in a week of pivotal data, culminating in the November payrolls report on Friday.
Fed Rate Cuts in Focus
Traders are increasingly optimistic about a rate cut:
- The CME FedWatch tool indicates a 74% probability of a quarter-percentage-point rate cut at the Federal Reserve’s Dec. 18 meeting, up from 62% a day earlier.
- Policymakers Mary Daly and Adriana Kugler suggested rates will continue to fall as the Fed shifts policy toward a more neutral stance.
- Fed Chair Jerome Powell is scheduled to speak on Wednesday, and his comments will be closely watched for further guidance.
US Steel Tumbles on Trump’s Tariff Talk
Shares of US Steel (X) dropped 8% after President-elect Donald Trump reiterated his opposition to the company’s proposed $15 billion acquisition by Japan’s Nippon Steel (5401.T, NPSCY).
Trump vowed to block the deal, citing plans to bolster US Steel through tax incentives and tariffs, emphasizing his commitment to American industrial strength.
