4:10pm: Job openings data sours session
The Dow closed Tuesday down 199 points, 0.6%, at 33,402, the Nasdaq Composite lost 63 points, 0.5%, to 12,126 and the S&P 500 fell 24 points, 0.6%, to 4,101. The small-cap Russell 2000 index slid 36 points, 2%, to 1,766.
Investors reacted to the Labor Department's report that US job openings slipped to 9.9 million in February, the fewest since May 2021. The DJIA and S&P 500 each finished lower for the first time in five sessions.
“There’s still plenty of job openings relative to [the] unemployed,” said Ed Yardeni, president of Yardeni Research. “The market is very sensitive to any minor change in the direction that they don’t want to see.”
12.05pm: S&P 500 falls for first time in five sessions
US stocks were lower in noon trading after the Labor Department announced that US job openings slipped to 9.9 million in February, the fewest since May 2021.
At midday, the Dow lost 247 points to 33,354, while the S&P 500 eased 26 points at 4,098 and the tech-heavy Nasdaq slipped 58 points to 12,132.
“Resilient is a good word,” Evercore ISI senior managing director Julian Emanuel said.
“[The] bottom line is that the economic forward looking backdrop continues to soften even as present conditions (2-3% GDP in 1Q) remain strong, set against already defensive positioning, stocks remain deadlocked in the 3800 -4200 range,” he added.
Notable movers included shares of AMC Entertainment Holdings Inc, which sank 22% after the company announced a settlement deal with a group of shareholders that could pave the way for further capital raises.
9:40am: Stocks and oil higher
US stocks were modestly higher at the open as investors continued to weigh up rising oil prices and their possible impact on the Fed’s path for interest rates ahead of more economic data.
Just after the market opened, the Dow Jones had added 6 points or 0.02% at 33,607 points, the Nasdaq had added 9 points or 0.1% at 12,199 points, and the S&P 500 was up 4 points or 0.1% at 4,129 points.
“The rise in oil prices makes the Fed’s job to rein in inflation more complicated,” commented FOREX.com market analyst Fiona Cincotta.
“This could ultimately mean higher interest rates for longer. That said, the market is still pricing in two rate cuts by the end of the year… pricing in a 58% chance of a rate hike in May, following the OPEC cut.”
6:30am: Balancing act
Wall Street is likely to open moderately higher following a volatile session on Monday as the likely inflationary impact of a curb in oil production was balanced by ISM manufacturing data that came in weaker than expected, casting a shadow over the US economy.
Futures for the Dow Jones Industrial Average (DJIA) rose 0.1% in Tuesday pre-market trading, while those for the broader S&P 500 index gained 0.3%, and contracts for the Nasdaq-100 added 0.5%.
A rise in energy stocks in response to the decision by OPEC+ to further reduce supply supported a 1% gain by the DJIA to 33,601 on Monday, as Exxon Mobil rallied 6%, Chevron gained 4.2% and Marathon Oil jumped 10%.
Meanwhile, the S&P 500 added 0.4% to 4,125 for a fourth day of gains. But the Nasdaq Composite shed 0.3% to 12,189.
“Markets generally made measured progress, although the fallout from the surge in the oil price tempered sentiment,” commented Richard Hunter, head of markets at interactive investor.
“In the US, the potentially inflationary effect of a higher oil price, prompted by surprise production cuts being announced by OPEC+, added to concerns that the Federal Reserve could be tempted to maintain its rate hiking policy,” Hunter said. “The tech-heavy Nasdaq index, which has been the bearer of good news for investors this year in anticipation of a pause in the hiking cycle, slipped slightly at the close but nonetheless remains ahead by 16.5% so far this year.”
More positively for investors keen to see an end to the monetary tightening environment, other economic releases suggested that the policy is beginning to take hold, he noted.
“US manufacturing activity dipped to its lowest level in almost three years in March, with new orders slumping amid the possibility of further falls if the expected credit tightening from banks washes through. This could have a particular impact on the important auto market in the US, where cars are largely purchased on credit, and more broadly could dampen big-ticket purchases," Hunter concluded.