U.S. stocks closed lower after data showed job openings unexpectedly rose in September, suggesting that demand for labor remains strong despite the Federal Reserve's interest rate hikes intended to cool demand and bring down inflation
, suggesting that demand for labor remains strong even as the central bank has embarked on a path of aggressive rate hikes in an effort to bring down stubbornly high inflation.
Investors have been paying close attention to labor market data for any signs of weakening in the job market, as decreasing wage pressures and easing demand would help reduce inflation, giving the Fed the ammunition to begin decelerating with a 50-basis-point rate hike in December.
The sharp focus on labor market data overshadowed another report which showed U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years in October as rising rates cool demand for goods and pricing pressures on manufacturers lessened. "That is the concern for the market is we know the Fed wants to slow down the labor market, they want to slow down hiring so demand drops in the economy, which will help inflation," said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan.
"From an employment standpoint things look really robust though, and that is putting some pressure on stocks."
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