Indexes end mixed as weak jobs spark jitters ahead of August wages report

• US stocks struggled on Wednesday and ended mixed as investors got lower-than-expected jobs.

• There were 7.67 million openings in July, the lowest number in three years.

• Traders see a growing chance of sharp rate cuts by the end of the year, according to CME’s FedWatch tool.

U.S. stocks continued to fall on Wednesday as traders took in weaker jobs data, fueling fears about the strength of the U.S. economy. All three benchmarks fell, while bond yields fell.

The economy had fewer job openings than expected in July, with employers posting 7.67 million job openings at the end of the month, according to the Bureau of Labor Statistics. That’s down from the 7.91 jobs posted in June and the lowest number of jobs in more than three years.

The new jobs data added to fears of a slowing economy raised by Tuesday’s manufacturing numbers. Yields fell on Wednesday, extending declines in key government bond yields seen in the previous session. The 10-year Treasury yield fell eight basis points to 3.761%.

“Adding further evidence of the deceleration in the US labor market, employment signs fell to their most anemic level in 42 months,” José Torres, senior economist at Interactive Brokers, said in a note. “The figure, the lightest since January 2021, raises optimism that the Fed will provide some liquidity relief, but such exuberance is offset by pessimism about economic growth.”

“As Chairman Jerome Powell recently said, further cooling of the labor market is not welcome. But that’s exactly what the JOLTS update conveys,” Mark Hamrick, senior economic analyst at Bankrate, said in a note.

Recession fears could be further bolstered by a weak jobs report on Friday. Economists expect the U.S. to have added 162,000 jobs last month, which would lower the unemployment rate to 4.2 percent.

Meanwhile, investors raised their expectations for aggressive rate cuts by the end of the year. Markets are pricing in an 86% chance the Fed will cut rates by 100 basis points or more by the end of the year, up from just 72% odds on Tuesday, according to CME’s FedWatch tool.

Here’s where US indices stood at the closing bell at 4pm on Wednesday:

Here’s what else is going on:

The story continues

In commodities, bonds and crypto:

• Oil futures fell. West Texas Intermediate crude fell 2 percent to $68.88 a barrel. Brent crude, the international benchmark, fell 1.9 percent to $72.38 a barrel.

• Gold was almost flat at $2,523.70 an ounce.

• The 10-year Treasury yield fell eight basis points to 3.761%.

• Bitcoin traded at $58,047.

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