US stocks fall as labour market remains tight
US stocks closed lower for a second straight session on Tuesday after data indicating that the labour market remained on solid ground dimmed hopes the Federal Reserve might have enough reason to begin reducing the size of its interest rate hikes. A survey showed US job openings unexpectedly rose in September, 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. The Dow Jones fell 0.27 percent, to 32,645, the S&P 500 lost 0.36 percent, to 3,857 and the Nasdaq dropped 0.69 percent, to 10,912.  Investors have been paying close attention to labour 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. Growing expectations the central bank may have enough justification to begin slowing in December – partly due to data pointing to a weakening economy and a corporate earnings season that has been better than expected – helped stocks rally in October, with the Dow notching its biggest monthly percentage gain since 1976. Megacap growth names such as Amazon and Apple , which have struggled since the Fed began raising interest rates, were once again under pressure, falling 5.52 percent and 1.75 percent, respectively. Uber surged 11.97 percent after giving an upbeat fourth-quarter profit view, and Pfizer rose 3.14 percent after the drugmaker raised full-year sales estimates for its Covid-19 vaccine.  Unverified reports that China was considering lifting its strict Covid-19 regulations helped boost US-listed shares of Chinese firms such as JD.Com, up 3.08 percent, and Alibaba Group, which gained 3.59 percent. The Fed is set to release its policy statement later on Wednesday, and investors will be closely eyeing any signals in the statement or comments from Fed Chair Jerome Powell afterward that the central bank is contemplating decreasing its rate hikes. (Reuters)