US equities experienced a decline following the release of February's Job Openings and Labor Turnover Survey (JOLTS) report, which indicated a continued drop in job openings. The report revealed that job openings fell to 7.56 million, a four-year low, below the expected 7.63 million, and also reported a decline in quits. While hiring and firing rates remained largely unchanged, layoffs increased. In response to the disappointing data, the S&P 500 and Nasdaq Composite indexes fell by 0.7% and 0.8%, respectively. The report has slightly increased the odds of a May interest rate cut by the Federal Reserve, now estimated at 15.2% according to CME Group data. Market analysts are awaiting the March employment report for further insights into labor market conditions. If inflation continues to rise alongside a deteriorating employment landscape, the Federal Reserve's current pause in rate adjustments may not be sustained.

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