Data Signal Cooling of the US Job Market: Bonds on the Rise, Stock Markets Hesitant

Yields on U.S. Treasury bonds experienced a remarkable increase, while U.S. stocks slightly declined in a turbulent session. This development occurred against the backdrop of new economic data indicating a weakening domestic labor market. Data released on Wednesday showed that U.S. job openings in July fell to their lowest level in more than three years. This reinforced investors' expectations that the Federal Reserve will lower key interest rates multiple times in the future. The yield on the two-year Treasury note decreased by 0.12 percentage points to 3.77 percent, marking the lowest level since May 2023. The yield on the 10-year note also reduced by 0.08 percentage points, reaching 3.76 percent. The S&P 500 ended Wednesday 0.2 percent lower, recording its fourth loss in five sessions. The tech-heavy Nasdaq Composite lost 0.3 percent as five of the technology companies grouped in the "Magnificent Seven" saw their values decline.