4:20pm: Nasdaq notches third-straight win
The Dow closed Tuesday up 293 points, 0.9%, at 34,853, the Nasdaq Composite added 239 points, 1.7%, to 13,944 and the S&P 500 improved 64 points, 1.5%, to 4,498. The small-cap Russell 2000 index climbed 25 points, 1.3%, to 1,894.
Nvidia continued its blistering rate of gains, as its share price rose another 4.2% Tuesday to $487.84. AT&T stock also jumped nearly 4% after Citi upgraded the stock and said in a note that the company would be able to afford its hefty dividend.
Broadly, the Nasdaq finished ahead for the third consecutive session.
12:00pm: Nasdaq leads the way as US stocks jump
US stocks continue to push higher as the weak economic data is seen as easing inflationary pressure which in turn could mean the US central bank decides it was has gone far enough with raising interest rates.
At midday, the Dow Jones Industrial Average was up 0.6% at 34,764.24, the S&P 500 was 1.1% higher at 4,483.13 and the Nasdaq Composite was up 1.6% at 13,923.02.
Craig Erlam, senior market analyst, at Oanda said: "From the Fed's perspective, the week is off to a promising start with the JOLTS job opening report much softer than expected, alongside downward revisions to the previous month."
"The Fed needs to see a softer labor market to be confident that price pressures aren't just abating but substantially and sustainably and this report is a move in the right direction," he explained.
"Job openings are now back at levels last seen in the summer of 2021 and not too far from where they were pre-pandemic. Further softness over the next few months looks very plausible which could contribute to a cooler labor market and sustainably lower wage growth," he believes.
He also noted the "CB consumer confidence number also suggests households are still wary, although the survey can be quite volatile and correlated with factors such as stock markets and gas prices, as we've seen the last couple of months alone."
11:07am: Weak data eases pressure on Fed to raise rates
US stocks have motored ahead after economic data which showed the labour market was slowing and consumer confidence flagging.
The data could ease pressure on the Federal Reserve to raise interest rates further as the figures suggest the monetary tightening is feeding through to economic activity.
Heading towards midday, and the Dow is up 0.3%, the S&P 500 is up 0.7% and the interest rate sensitive Nasdaq is up 1.2%.
The number of job vacancies in the US dropped to the lowest level in more than two years in July, and fewer Americans quit their positions, in the latest sign the labor market is cooling off, the latest figures revealed.
Data from the US Bureau of Labor Statistics showed there were 8.827 million job vacancies in July, down from 9.165 million in June, and below a FXStreet-cited consensus of 9.465 million.
It is the smallest number of openings since March 2021.
US consumer confidence fell sharply, and by more than expected in August, figures from the Conference Board showed on Tuesday.
The Conference Board consumer confidence index declined in August to 106.1 from a downwardly revised 114.0 in July, and below expectations of around 116.
The present situation Index, based on consumers’ assessment of current business and labor market conditions, fell to 144.8 (from 153.0 while the expectations index, based on consumers’ short-term outlook for income, business, and labor market conditions, declined to 80.2 in August, reversing July’s sharp uptick to 88.0.
Expectations were just above 80, the level that historically signals a recession within the next year, the report showed.
“Consumer confidence fell in August 2023, erasing back-to-back increases in June and July,” said Dana Peterson, chief economist at The Conference Board.
9:40am: US stocks consolidate ahead of key economic data
US stocks hovered around opening levels in early trading as investors await key inflation and employment data this week.
Shortly after the opening bell, the Dow Jones Industrial Average was up 12.51 points at 34,572.49, the S&P 500 was 2.39 points higher at 4,435.70 and the Nasdaq Composite was down 15.51 points at 13,689.62.
Investors are awaiting JOLTS job vacancy figures and consumer confidence data today, ahead of inflation and non-farm payrolls figures later in the week.
Stocks on the move include 3M Co which backed up Monday's strong gains, adding a further 1.3% after agreeing a $6bn settlement with almost 300,000 military veterans who claim combat earplugs it supplied to the US army failed to protect them from hearing loss.
The company said it would contribute $5bn in cash and $1bn in stock over a five-year period, as part of a settlement, which will result in a pre-tax charge of approximately $4.2 billion in the third quarter of 2023.
JM Smucker rose 3.2% after it raised guidance after reporting net income nearly doubled in the financial first quarter.
7:00am: Steady start expected on Wall Street
US stocks look set to creep higher, consolidating recent gains, as investors look ahead to key data on inflation and employment later this week.
In pre-market trading, futures for the Dow Jones Industrial Average were 0.1% higher, while those for the S&P 500 rose 0.1%, and contracts for the Nasdaq 100 futures were up 0.1%.
The jobs market will be in focus all week starting with JOLTS vacancy figures Tuesday, as investors look for evidence that interest rate rises are beginning to slow down a so far resilient employment market.
Data from the US Bureau of Labor Statistics is expected to show job openings edged down to about 9.46 million in July from 9.58 million the previous month.
Later this week, ADP private sector payroll figures and weekly jobless claims data will be released, ahead of the main event, non-farm payrolls on Friday.
Elsewhere today, US consumer confidence figures will be released.
Morgan Stanley (NYSE:MS) expects the Conference Board Consumer Confidence Index to come in at 116.6 in August, a tick down from 117.0 in July.
In corporate news, results are due from electronics retailer Best Buy, food and beverage maker JM Smucker and discount retailer Big Lots.
While after the closing bell it is the turn of information technology company HP and cloud storage company Box to update investors on their financial performance.