Although the demand for work is still quite strong, U.S. job openings suffered their biggest drop in nearly two-and-a-half years in Augustor, a sign that the Federal Reserve’s mission to control inflation was succeeding in slowing down the economy.
Before, The Reserve Bank of Australia surprised markets with a 25 basis point hike in interest rates. less than expected. Its interest rate reached a nine-year high after six hikes, a tightening cycle in which other central banks are also immersed.
“There’s hope that the Fed sometime in the fourth quarter will say the same thing. Not stop raising interest rates, just slow down,” he said. “That’s what the market is waiting for under the surface.”
Still, Fed Governor Philip Jefferson said inflation is the most serious problem facing the US central bank and “it may take some time” to address it.
San Francisco Fed President Mary Daly said the central bank needs to make more rate hikes.
Tech stocks, sensitive to rates, rose as benchmark 10-year Treasury yields fell for the second day in a row after the jobs data and the surprise move in Australia.
“The lower-than-expected job openings data points to a weakening in the labor market. If confirmed by Friday’s non-farm payrolls report, it could give the Fed the cover to slow its tightening,” he said. Thomas Hayes, of Great Hill Capital in New York.
Source: Ambito
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