The Dow Jones Industrial Average closed more than 800 points on Tuesday (Oct. 4), while the S&P500 posted its strongest single-day gain in two years as investors eased concerns about speeding up gains. The Federal Reserve’s (Fed) interest rate after the US released weak economic data. In addition, the Reserve Bank of Australia raised interest rates less than market expectations. It also led investors to expect the Fed to slow down interest rate hikes as well.
The Dow Jones Industrial Average closed at 30,316.32, up 825.43, or +2.80%, the S&P 500 closed at 3,790.93, up 112.50, or +3.06%, and the Nasdaq closed at 11,176.41, up 360.97, or +3.34%.
The U.S. Department of Labor’s Bureau of Labor Statistics released the Job Openings and Labor Turnover Rate (JOLTS) survey. The measure of demand in the labor market fell 1.1 million jobs to 10.1 million in August. which is the lowest level since June 2021 and below analysts’ forecast of 11.1 million positions.
However, the JOLTS numbers that have dropped dramatically It’s a sign that recent interest rate hikes by the Fed could slow down the heat of the economy. and may cause the Fed to weaken its interest rate hike in the future. In the past, JOLTS has been the focus of the Fed. Because it is a measure of tightness in the labor market. This is a factor in the Fed’s monetary policy and interest rates.
The Reserve Bank of Australia (RBA) raised its policy rate by 0.25% to 2.60% at its meeting yesterday. This is a lower interest rate hike than the market expected.
Anthony Seglimben, an analyst at Ameriprice. Michigan Financial said the RBA was the first major central bank to realize that it should slow down the strength of interest rate hikes. After several aggressive interest rate hikes this year. The RBA’s actions have led investors to expect the Fed to slow down the rate hikes as well. at the meeting during the fourth quarter of this year.
Technology stocks sensitive to interest rates U.S. 10-year Treasury yields tumbled for a second day in a row, with Amazon rising 4.5 percent, Microsoft up 3.38%, Alphabet up 3.04 percent. Eye Platforms rose 1.2%.
Tesla shares rose 2.9 percent following reports that Tesla Chief Executive Elon Musk plans to go ahead with a deal to buy Twitter at a price of $54.20 per share.
Banking stocks also jumped strongly. JPMorgan was up 4.68 percent, Morgan Stanley was up 4.47 percent, Goldman Sachs was up 5.25 percent and Citigroup was up 4.35 percent.
Investors are keeping an eye on the US non-farm payrolls numbers for September on Friday. While analysts predicted that The number of jobs will increase by just 265,000 in September. After rising 315,000 jobs in August The unemployment rate in September is expected to remain stable at 3.7%.