On May 2, the U.S. Labor Department reported that JOLTs Job Openings declined from 9.97 million in February to 9.59 million in March, compared to the analyst consensus of 9.78 million. The report indicated that the Fed's rate hikes have exerted material pressure on the job market.
The FedWatch tool shows that there is a 96.8% probability of a 25 bps rate hike at tomorrow's meeting. The JOLTs Job Openings Report should not have a material impact on the Fed's short-term policy outlook as the majority of market players believe the Fed will raise rates to 500 – 525 basis points.
Traders are also eyeing data from the Factory Orders report for March. The report showed that Factory Orders rose by 0.9% month-on-month, compared to the analyst consensus of 1.1%.
The SP500 is under pressure and moving towards the 4130 level as the Job Openings and Factory Orders JOLTs report missed analysts' expectations. Investors are worried about the economic slowdown and remain cautious ahead of tomorrow's Fed decision.
The U.S. dollar index eased slightly from session highs as Treasury yields declined. Gold is moving closer to the $2000 level, supported by lower Treasury yields.
