by Chibuike Oguh

NEW YORK (Reuters) – The New York Stock Exchange ended slightly higher on Tuesday, after an up-and-down session, after lower-than-expected U.S. employment data strengthened the hope of seeing the Federal Reserve (Fed) lower interest rates.

The Dow Jones index gained 0.36%, or 140.26 points, to 38,711.29 points.

The broader S&P-500 gained 7.94 points, or 0.15%, to 5,291.34 points.

The Nasdaq Composite advanced 28.38 points (0.17%) to 16,857.05 points.

In decline at the start of the session, the main Wall Street indices erased their losses before entering positive territory.

A report released today showed that the number of job openings in the United States fell in April to a more than three-year low, signaling a softening in the labor market – a factor that fuels the prospect of a rate cut this year.

US Treasury yields fell following the release of the report, which confirmed a series of recent data indicating a slowdown in growth in the US economy – including a slowdown in manufacturing activity, for a second consecutive month, in May.

“What we’ve seen so far this week is that the data is relatively weak,” said James St. Aubin, chief investment officer at Sierra Mutual Funds in California.

“The effect is to help the rebound in bonds, while for stocks it is a double-edged sword: an announcement on rates is expected, and it becomes more likely with weaker data,” he said. he declares. According to FedWatch, markets are now betting about 65% on a rate cut in September, compared to 50% last week.

High-growth stocks, including Amazon, Meta Platforms and Microsoft, ended the session higher, after initially falling.

Amid concerns about oil demand, which is weighing on prices, Exxon Mobil and Chevron declined.

Bath & Body Works fell 12.8% after lowering its quarterly profit forecast.

(Written by Jean Terzian)

Copyright © 2024 Thomson Reuters