U.S. job openings unexpectedly jumped last month, signaling labor demand remains strong despite the Federal Reserve's efforts to cool inflation and loosen the historically tight labor market.
What Happened: Employment openings increased to 10.7 million in September, according to data the Bureau of Labor Statistics released on Tuesday. The number came in above average economist estimates of 9.85 million.
The number of hires fell to 6.1 million last month, while total separations decreased to 5.7 million. Within separations, quits remained largely unchanged at 4.1 million and layoffs and discharges edged down to 1.3 million.
Why It Matters: The Federal Reserve will be paying close attention as it attempts to cool inflation near its highest levels in more than 40 years.
The Fed's continued rate hikes are expected to eventually slow the economy and spur layoffs, but the labor market remains resilient.
Last week, U.S. initial jobless claims ticked slightly higher, but came in below economist estimates and still remain near historically low levels.
The U.S. Bureau of Economic Analysis also reported an advanced estimate of third-quarter gross domestic product (GDP) last week showing that U.S. economic growth rebounded last quarter.
Tuesday's data, showing an unexpected jump in job openings last month, signals that another 0.75% rate hike is likely coming on Wednesday.
If the Fed were to pivot on Wednesday and raise rates by less than 0.75%, it could be grounds for a market rally. Although some are anticipating "pivot language" at the FOMC meeting, a strong majority anticipate another 0.75% rate hike.
A decision on rates is due Wednesday afternoon at 2 p.m. ET. The Fed's final meeting of the year is scheduled for Dec. 14.
SPY Price Action: The SPY has a 52-week high of $479.98 and a 52-week low of $348.11.
The SPY was down 0.34% at $384.91 Tuesday afternoon, according to Benzinga Pro.
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