NEW YORK, June 4 (Xinhua) -- The U.S. stocks ended higher on Tuesday, after softer-than-expected labor market data reinforced hope that the Federal Reserve might cut interest rates later this year.
The Dow Jones Industrial Average rose 140.26 points, or 0.36 percent, to 38,711.29. The S&P 500 gained 7.94 points, or 0.15 percent, to 5,291.34. The Nasdaq Composite Index increased by 28.38 points, or 0.17 percent, to 16,857.05.
Six of the 11 primary S&P 500 sectors ended in green, with real estate and consumer staples leading the gainers by going up 0.95 percent and 0.93 percent, respectively. Meanwhile, materials and energy led the laggards by dropping 1.22 percent and 0.97 percent, respectively.
The latest Job Openings and Labor Turnover Survey (JOLTS) report showed 8.06 million available jobs in April, down from 8.36 million in March and also the lowest level since February 2021. As of April, there were approximately 1.2 available jobs for every job seeker, the lowest ratio since June 2021, according to Bureau of Labor Statistics data on Tuesday.
"The Federal Reserve will welcome signs of cooler labor market conditions, but the JOLTS data don't change our view that the Fed will be content to keep interest rates at current levels until September," Nancy Vanden Houten, lead U.S. economist at Oxford Economics, said Tuesday. "The labor market remains healthy enough to allow Fed policy decisions to be primarily guided by readings on inflation."
Orders for manufactured goods in April rose 0.7 percent month on month, marking the third consecutive monthly gain, the Commerce Department reported on Tuesday.
Weaker-than-expected U.S. economic data this week has left 2-, 10- and 30-year treasury yields all on track for their fourth straight session of declines as of Tuesday. The 10-year rate was down at around 4.332 percent, while its 30-year counterpart was down at 4.476 percent in afternoon trading, which is the lowest since at least April 4 and April 9.
A "clear consensus view" has been formed to pull volatility lower and stock prices higher, according to Jason Draho, head of asset allocation at UBS Financial Services' chief investment office. "Growth is slowing but not cracking, inflation is stubborn but the trend is still lower, and the bar for Fed rate cuts is low while hikes are effectively off the table," Draho wrote in a client note.
GameStop shares declined by 5.36 percent on Tuesday, following a 21-percent surge in the previous session triggered by a social media post from an account believed to be linked to the retailer's most public supporter. AMC shares remained mostly unchanged on Tuesday after gaining 11 percent on Monday. ■
