NEW YORK: Wall Street ended sharply higher on Tuesday(Aug 29), lifted by Tesla, Nvidia and other megacap growth stocks after a drop in monthly job openings cemented expectations of a pause in interest rate increases by the US Federal Reserve.
The S&P 500 and the Nasdaq touched their highest in over two weeks during the session after the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) showed the number of job openings stood at 8.827 million in July, falling for the third straight month and signaling easing labour market pressures.
The Dow Jones Industrial Average rose 292.69 points, or 0.85%, to 34,852.67, the S&P 500 gained 64.32 points, or 1.45%, to 4,497.63 and the Nasdaq Composite added 238.63 points, or 1.74%, to 13,943.76.
Investors also parsed a report from the Conference Board showing consumer confidence in the United States fell to 106.1 in August, compared with expectations of 116.
Interest rate futures signalled an 87% chance the Fed will keep rates steady at its September meeting and a 54% chance it will keep rates on hold through November, according the CME Group's FedWatch tool.
“Investors are of the mindset that ‘You know what, maybe interest rate hikes are indeed behind us. So let’s buy back into stocks’,” said Sam Stovall, chief investment strategist at CFRA Research.
The yield on the 10-year Treasury note eased to 4.11%, while that on the two-year note fell back below 5% after hovering around that level for the past few sessions.
The decline in yields supported growth stocks, with Apple, Nvidia and Meta Platforms all gaining.
Tesla rallied, even after documents showed a US regulator sent a special order to the electric vehicle maker asking questions about changes to the driver monitoring system for its Autopilot software.
Alphabet received a boost from a swath of fresh artificial-intelligence technology and partnerships unveiled by the Google-parent.
Verizon and AT&T gained after Citi upgraded the telecom companies to “buy” from “neutral”. – Reuters