Stock Market Update

[BRIEFING.COM] Buyers continue to control the tape, which has seen the Nasdaq Composite (+1.1%) and Russell 2000 (+1.0%) in command positions since the open, bolstered in general by tariff relief and growth stock momentum following the Palantir Technologies (PLTR 102.75, +19.01, +22.7%) earnings report.

They have also been helped by the decline in rates following the December JOLTS - Jobs Openings Report, which showed a stark drop in openings to 7.600 million versus an upwardly revised 8.156 million (from 8.098 million) in November.

The 2-yr note yield, at 4.24% just before the 10:00 a.m. ET release, is at 4.21% now, down six basis points, and the 10-yr note yield, at 4.56% just before the release, is at 4.52% now, down three basis points from yesterday's settlement.

The drop in job openings was regarded as a sign of a loosening labor market (i.e., employers posting fewer jobs to fill than before). That understanding didn't move the needle all that much in terms of rate cut expectations. Importantly, though, it aligned with the market's thinking that the next policy move, when it comes, will be another rate cut.

According to the CME Fed Watch Tool, there is a 64.4% probability of a 25-basis points rate cut at the June FOMC meeting versus 59.3% a day ago.