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Wall Street traders kept piling into bets the Federal Reserve will cut rates in September as weak labor data lifted bonds. Those wagers also propped up stocks, which halted a two-day rout amid a rally in big tech.

Just days ahead of the US payrolls report, a drop in job openings to the lowest in 10 months saw traders almost fully pricing in a Fed cut this month and projecting at least two in 2025. Treasuries bounced after a slide that put the 30-year yield close to 5%. While most shares in the S&P 500 actually fell, Alphabet Inc. led gains in megacaps as Google dodged a forced sale of Chrome.

The slide in vacancies indicates companies are becoming more cautious and selective with their hiring as they attempt to gauge the impact of tariffs on the economy. In addition to the openings data, the pace of hiring has slowed and it is taking longer for unemployed people to find another position.

Before that, Friday’s jobs data will be a crucial input for Fed officials. Some are less concerned about the slowdown in payrolls growth because it’s being accompanied by a decline in the participation rate. They’re also wary of reducing borrowing costs when inflation is gradually increasing.

Today's show features:

Bloomberg Economics US and Canada Economist Stuart Paul details the Federal Reserve’s August Beige Book release
Jason Granet, Chief Investment Officer of BNY, on the market outlook and the Federal Reserve
Jaime Leverton, CEO of ReserveOne, on the role of crypto treasury companies and her firm’s IPO plans
Rick J. Caruso, Founder and Executive Chairman of Caruso, on the hospitality and commercial real estate business, and California economic recovery from this year’s wildfires

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Weak Jobs Data Fuel Fed Bets

Bloomberg Businessweek