Investors bet on Fed cuts, but labor data cuts deeper

The S&P 500 and the Nasdaq Composite climbed Wednesday, powered by tech shares after a federal court decision allowed Google to keep its Chrome browser.

Optimism around a looming rate cut by the Federal Reserve also buoyed markets, with the CME Fedwatch tool indicating a 96.6% chance of a Fed rate cut in its September meeting later this month.

However, weak economic data seems to hang like a dark cloud over investors. Job openings ticked down in July to levels rarely seen since the Covid-19 pandemic, bolstering fears of cooling in the labor market.

The Job Openings and Labor Turnover report showed around 7.18 million listings in July, according to data from the Bureau of Labor Statistics released Wednesday. That’s only the second reading under the 7.2 million level since the end of 2020.

Economists also expect Thursday’s ADP private payrolls report to show a softer print for August, and jobless claims data is expected to show a slight uptick. The unemployment report due Friday is forecast to show jobless rate inching up to 4.3% from 4.2%.

In short, the Fed may be ready to cut rates, but the job market’s cutting deeper.

U.S. markets mostly climb. U.S. markets mostly rose Wednesday, boosted by tech shares after a federal court decision in an Alphabet antitrust case meant that Google would not have to sell its Chrome browser. The tech-heavy Nasdaq Composite gained 1.03%, and the S&P 500 climbed 0.51%. However, the Dow Jones Industrial Average was marginally down. Across the Atlantic, Europe’s Stoxx 600 tumbled 1.47%, marking its steepest loss since Aug. 1, dragged by tech and travel stocks.

Bonds under pressure. Long-dated bonds around the world are under pressure again, mainly due to broad investor unease with fiscal as well as monetary policy paths of several major economies. Yields on 30-year bonds in the U.S., UK, Japan and Germany have surged, with Japanese bonds hitting a record high.

U.S. tightens chipmaker export rules. The U.S. has revoked a waiver that allowed chipmaking giants such as TSMC, SK Hynix, Samsung and Taiwan Semiconductor Manufacturing Co. to export key chipmaking equipment and technology to China. TSMC confirmed to CNBC on Wednesday that a fast-track export privilege known as validated end user status will end on Dec. 31.

No more shared free shipping. Amazon is eliminating a program that allows members of its Prime  subscription program to share free shipping benefits with people outside their household. The company began notifying users in recent days that it plans to end the Prime Invitee Program on Oct. 1, according to a notice viewed by CNBC.

[PRO] Gold at fresh high. Bullion hit fresh highs this week, with spot values extending their record run above the $3,500 mark into the middle of the week. But analysts say that the yellow metal may still have more to run as demand continues to remain strong.

Apple might raise iPhone prices even as it has so far weathered Trump’s tariffs

Wall Street commentators said Apple CEO Tim Cook had largely navigated the threat of tariffs on Apple’s business successfully by offering Trump an additional $100 billion U.S. investment.

But despite the 24-carat trophy Cook handed Trump during their meeting, the true costs of those tariffs may finally show up for Apple customers later this month. 

Some analysts are forecasting the company to raise prices on its devices even after all Cook has done to avoid the worst of the tariffs.

— Kif Leswing