Stock Market Celebrates What is Typically “Bad” Business News
A strong surge in U.S. stock market indices occurred on Tuesday following the release of fresh data indicating a decline in job openings during July, marking their lowest level since 2021. This development is seen as potentially relieving some of the strain that the tight labor market has been placing on inflationary pressures.
In mid-afternoon trading, the Nasdaq exhibited a notable 1.7% increase, accompanied by a 1.3% rise in the S&P 500 and a 0.7% climb in the Dow Jones Industrial Average.
Market participants found optimism in the results of the July Job Openings and Labor Turnover Survey (JOLTS), which highlighted a decrease in both job openings and voluntary resignations for the same month. These figures have raised expectations that officials at the Federal Reserve might adopt a more accommodative stance at their forthcoming policy meeting scheduled for September.
International stock markets also displayed positive performance on Tuesday. Chinese equities achieved a gain of over 1%, bolstered by a government directive instructing state-owned banks to lower interest rates on existing mortgages and deposits, a move intended to further stimulate the economy. Likewise, European stocks witnessed an upward trajectory.
After shaking off the subdued market sentiment that characterized August, stocks rebounded yesterday. The Nasdaq experienced a commendable upswing of 0.8%, while the Dow and the S&P 500 enjoyed respective increments of 0.6%.
