Investing.com — The Dow Jones closed higher on Tuesday after a drop in job openings to a three-year low pointed to weaker economic growth but also raised hopes for a Federal Reserve rate cut this year.
At 4:00 PM ET (20:00 GMT), it was up 140 points, or 0.4%, up 0.1% and up 0.2%
The number of vacancies falls to the lowest point in three years
Interest rates for April fell to a more than three-year low of 8.1 million, confusing economists’ estimates for a rise to 8.37 million.
The data pointing to easing in the labor market suggests that the economic strength we have seen so far this year could be cooling off. Because the Fed has previously identified a labor market downturn as a condition for easing rates, bets on a September rate cut rose to 55% from 44.9% last week, according to Investing.com’s Fed Rate Monitor.
Government bond yields fell on improved hopes for a rate cut this year, with the yield on the 10-year government bond trading 6.6 basis points lower at 4.333%.
The new jobs update comes ahead of Friday’s nonfarm payrolls report, followed by next week’s Fed meeting.
Intel unveils new AI chips, Tesla hit by sales decline in China, Gamestop cools rally
Intel Corporation (NASDAQ:) unveiled a slew of artificial intelligence chips, a day after Nvidia (NASDAQ:) and AMD (NASDAQ:) made a similar announcement, as the chipmaker looks to close the wide gap with its rivals. But some on Wall Street suggest that further upgrades from Intel will likely be needed before it can meaningfully compete with its rivals.
“We continue to see limited traction for Intel on this front, and believe Intel’s success in AI will likely have to wait for Falcon Shores and its traction in that area,” Wedbush said in a Wednesday note.
Shares of Tesla (NASDAQ:) traded below the flatline after sales of Chinese-made electric vehicles fell 6.6% to 72,573 in May from a year ago, Reuters reported on Tuesday, citing data from the China Passenger Car Association.
Guggenheim analysts Roland Jewsikow, a Tesla bear, said he sees Tesla stock falling to $126 per share, indicating nearly 30% downward pressure from Tesla’s current price, citing concerns about falling to sell.
Shares of GameStop (NYSE:) fell 5% in volatile trading, giving back some of the previous session’s sharp rally after stock influencer Keith Gill appeared to hold onto gains in his holdings of the video game retailer following a sharp rally on Monday.
On the earnings front, Bath & Body Works Inc.’s weaker second-quarter expectations overshadow. (NYSE:) first-quarter results that beat expectations, sending the retailer’s shares down nearly 13%.
The energy sector continues to decline as oil prices hit four-month lows
Energy stocks remained under pressure from falling oil prices after OPEC+ increased supply later this year.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, agreed on Sunday to extend most of their oil production cuts through 2025, but left room for voluntary cuts from eight members to be gradually reversed.
Halliburton Company (NYSE:), Baker Hughes Co (NASDAQ :), ExxonMobil Corp (NYSE:) were among the biggest decliners in the energy sector.
(Peter Nurse, Ambar Warrick contributed to this article.)
