US stocks gain ground midday despite American job openings disappointment

12:05 p.m .: Dow cracks over 700 points

Major US indexes gained ground at midday, although figures show US job vacancies fell more-than-expected in August.

At midday, the Dow Jones Industrial Average had hit an intraday high of 30,290 points and was still up 768 points, or 2.6%, to 30,247, while the S&P 500 was up 2.9% to 3,783 and the Nasdaq Composite was up 3.3% 11.171.

The US Bureau of Labor Statistics reported today in its Job Openings and Labor Turnover Summary (JOLTS) that job openings fell to 10.1 million in August, down more than a million from the 11.2 million job openings corresponds to in July.

Joshua Mahony, senior market analyst at online trading platform IG, said risk appetite helped propel shares higher, but the US dollar continues to come under pressure.

“As risk sentiment improves for now, we see the dollar back on the back foot,” Mahony wrote in a report.

Mahony also wrote that the latest JOLTS numbers showed the biggest slump in US job vacancies on record, a possible sign that a slowing job market could put the brakes on persistently high inflation from the world’s central banks.

“Nevertheless, we seem to be entering a time where bad news could be good news,” he wrote.

At midday, cruise lines and casinos were among the biggest gainers as Norwegian, Royal Caribbean and Carnival posted gains of 13.4%, 12.6% and 12.5%, respectively, while Caesars Entertainment rose 13%.

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On the other hand, markets were relatively flat with property fund Welltower down 1.5%, Teleflex down 0.9% and Essex Property down 0.8%.

9.35 a.m .: Sudden demonstration is not expected to last

US stocks continued yesterday’s much-welcomed rally, with the three major indices starting the day in positive territory on Tuesday.

Immediately after the market opened, the Dow Jones Industrial Average was up 450 points, or 1.5%, to 29,941 points, the S&P 500 was up 68 points, or 1.9%, to 3,747 points, and the Nasdaq Composite was up 256 points, or 2.4%. increased to 11,073 points.

Forex.com market analyst Fawad Razaqzada said the sudden rebound was due to hopes that central banks would soon turn to a more dovish stance.

“Built on hopes that weakening US economic data will lead to a shift in central bank policy, equities have risen along with metals and bonds as the dollar moves in the opposite direction,” he said.

However, he added that he expects the stock market recovery to slow down and the dollar to start moving higher again in the not too distant future.

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“I’m afraid a lot of the factors that weighed on risk appetite are still there,” Razaqzada said. “The gains came on the back of a poor third quarter for risk assets…this weighed heavily on stocks, cryptos, metals and bonds.”

6:30 a.m.: More wins

US stocks are likely to open higher on Tuesday, continuing their rebound from yesterday, as investors welcome the prospect of weaker economic data as a sign that the Federal Reserve will be confident in slowing the pace of rate hikes.

Futures for the Dow Jones Industrial Average were up 1.3% in premarket trading, while those for the S&P 500 were up 1.5% and contracts for the Nasdaq-100 were up 1.9%.

“Right now we can all take a deep breath and enjoy the positive sentiment in the global financial markets. European indices rose yesterday while US indices rallied. Futures point to a bullish start on both continents,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

Some of the gains were due to firmer oil prices, with some investors betting that oil cartel OPEC will cut production by around a million barrels a day to stabilize oil prices. There is also speculation that key producer Saudi Arabia may be willing to build up some reserves to offset Russian oil caps, Ozkardeskaya said.

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Benchmark WTI crude futures were up 0.8% to $84.26 a barrel, while Brent crude futures were up 0.9% to $89.66 a barrel.

Meanwhile, the US ISM manufacturing index released yesterday showed that expansion in the world’s largest economy slowed faster than investors had expected.

“Interestingly, the soft ISM has given the market a positive turn,” Ozkardeskaya added.

“I believe this is an important sign that despite the highly hawkish rhetoric from Federal Reserve officials, many investors no longer believe the Fed could tighten any further at the current pace. This is a good ingredient for a global market recovery.”

Looking ahead, this week’s focus will be on a variety of US jobs indicators, culminating in Friday’s key nonfarm payrolls figure.

“Today we will be monitoring the US job vacancies data and hope to see a lower number as the Fed sees job vacancies as a factor that could ease pressure on the US job market,” Ozkardeskaya said.

The ADP report follows on Wednesday.

“Investors are praying for weak numbers this week to continue the rally,” Ozkardeskaya noted.

Still, fears that the world’s largest economy will be mired in a prolonged recession amid rising interest rates and rising inflation continue to worry investors and are likely to limit gains.

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