Dow Edges Higher as Jobs Revision Fuels Fed Rate-Cut Bets

Lead The Dow Jones Industrial Average rose 0.1% to close at 45,547.60 on Tuesday in New York, as a downward revision to U.S. jobs data stoked expectations of Federal Reserve rate cuts.

Nut Graf Traders reacted to Bureau of Labor Statistics figures showing 911,000 fewer jobs added over the year ending March, a steeper adjustment than economists anticipated, prompting markets to price in an imminent easing by the Fed and underpinning cautious gains on Wall Street.

Market Movers Weak Jobs Revision

• The BLS update revealed the U.S. economy added significantly fewer positions than previously estimated, intensifying debates over monetary policy and heightening recession concerns among investors.

Fed Rate-Cut Outlook

• Futures traders now assign a nearly 100% probability to a 25 basis-point Fed cut at the central bank’s September meeting, with a small chance of a larger 50 basis-point move, according to CME Group data.

Sector Highlights

• Energy shares led gains in the S&P 500, rising 1.7% on higher oil prices after geopolitical tensions in the Middle East. Chevron climbed over 1%, while Exxon Mobil jumped 2%.
• Technology lagged slightly, with the Nasdaq Composite slipping 0.2% as investors weighed Apple’s annual product event kicking off in Cupertino.

Looking Ahead Key inflation reports due later this week-producer prices on Wednesday and consumer prices on Thursday-will offer further clues on price pressures and shape expectations for the Fed’s next policy move.