According to Yahoo News, US stocks traded mixed on Tuesday, while Treasury yields fell significantly due to weaker labor market data. The 10-year Treasury rate dropped below 4.2% for the first time since September, as recent jobs data reassured traders that the Federal Reserve's rate hiking cycle is likely over, with the economy showing signs of cooling off.
Job openings in October decreased to their lowest level since 2021, with 8.7 million openings compared to September's 9.4 million, falling below consensus. Comerica Bank Chief Economist Bill Adams commented on the report, stating that the labor market is 'unmistakably cooling' after running red hot for the last few years, with hiring and turnover rates returning to pre-pandemic norms.
Although markets anticipate another Fed pause in the upcoming FOMC meeting this month, they are starting to price in interest rate cuts as early as January. Further labor data this week, including weekly jobless claims on Thursday and November's jobs report on Friday, will help inform policy outlooks. Meanwhile, Bitcoin experienced a 3.93% increase, reaching $43,880.
