Stock Market Today: Stocks Retreat After Strong Job Openings Data

stock market chart with bars going lower

(Image credit: Getty Images)

Stocks erased early gains to end lower Tuesday after economic data signaled continued strength in the labor market.

All three major indexes opened in positive territory today but slipped into the red after the Labor Department said there were 10.7 million job openings in the U.S. in September – up from 10.3 million in August.

5 Best Consumer Staples Stocks to Buy Now

The report comes as the Federal Reserve kicked off its two-day policy meeting, with the central bank expected to issue its fourth straight 75 basis point rate hike tomorrow. (A basis point = 0.01%.) However, what investors really want to know is what the Fed plans to do next on monetary policy – and today's economic news spooked investors into thinking more jumbo-sized rate hikes could be on the horizon.

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just ~~$107.88~~ $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

https://cdn.mos.cms.futurecdn.net/flexiimages/y99mlvgqmn1763972420.png

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

"Momentum was building on expectations for the Fed to downshift their tightening pace in December, but now that call seems like it may have been premature," says Edward Moya, senior market strategist at currency data provider OANDA. "Rates might need to stay higher for longer if the labor market is still healthy and inflation ends up being stickier than markets are initially thinking."

Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.

At the close, the blue-chip Dow Jones Industrial Average was off 0.2% at 32,653, the broader S&P 500 Index was 0.4% lower at 3,856, and the tech-heavy Nasdaq Composite was down 0.9% at 10,890.

Midterm Elections and the Stock Market

This week, all eyes will be on tomorrow's Fed decision and Friday's October jobs report, but the midterms aren't far behind. While early voting is already underway, the election will conclude next Tuesday, Nov. 8. "The entire House of Representatives (435 seats), 34 senators, and 36 governors will be determined," says John Lynch, chief investment officer for Comerica Wealth Management. "At stake is control of Congress and potentially the path for legislative policy and regulation for the next two years."

Where to Put Safe Money Today

Lynch adds that several polling sites are predicting a "variety of outcomes, further confusing the picture for investors and voters." However, as counterintuitive as it might seem, the results of the midterm elections may not even matter to stock market returns. Read on as we explore why.

In October, Stocks Soared. Is the Bear Market Dead?

TOPICS

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.