After economic results that supported speculation the Federal Reserve is nearing the end of its aggressive tightening campaign, stocks increased to their highest level since June, while bond yields declined.
When the index finished just short of 4,500, nearly 90% of the S&P 500 businesses experienced growth. The Nasdaq 100 increased by 2% as a result of a rise in megacaps like Tesla Inc. and Nvidia Corp. Two-year Treasury yields decreased by 17 basis points to about 4.9%.
Once the first Bitcoin exchange-traded fund became possible thanks to a US court decision, the cryptocurrency market as a whole enjoyed increases. The Grayscale Bitcoin Trust increased by 17%, Coinbase led the industry's share price gains, and the world's largest digital token increased by 7%.
Swap agreements revealed weaker bets on a Fed rate increase in 2023 and a higher likelihood of a policy change in the first half of 2024. The probability of a quarter-point rate increase in November is presently seen by traders at 56%, down from 75% earlier on Tuesday. Also, they moved their wagers on the anticipated commencement of rate decreases from July of next year to June.
The number of job openings in the US decreased by more than anticipated to 8.83 million, which is a more than two-year low and provides more indications that labour demand is decreasing. Other statistics revealed a decline in consumer confidence due to deteriorating job outlooks, rising borrowing prices, and persistent inflation.