In the midst of turbulent trading on Wednesday, US equity indexes displayed a mixed performance as midday approached. The volatility in the markets was influenced by a decline in government bond yields, which followed an unexpected drop in job openings. This development has contributed to an increased likelihood of a more substantial interest-rate cut occurring this month. The S&P 500 index saw a slight uptick of less than 0.1%, ending the day at 5,529.3.
Meanwhile, the Nasdaq Composite rose by 0.1% to finish at 17,156.5, while the Dow Jones Industrial Average experienced a minor decline, settling at 40,907.8. Among the sectors, utilities and communication services emerged as the leaders in gains, whereas the energy sector faced some of the steepest declines. Examining the latest economic indicators, job openings in the US dropped to 7.673 million in July.
This figure, released by the Bureau of Labor Statistics, was notably less than the 8.100 million openings anticipated in a survey conducted by Bloomberg. Additionally, this figure marked a decrease from 7.910 million openings reported in June, indicating a troubling trend in the labor market. In response to the changing economic landscape, Treasury yields experienced a notable decline.
The yield on the 10-year Treasury note fell by 5.7 basis points to 3.79%, while the two-year note saw a drop of 9.7 basis points to 3.8%. This marked only the second occasion since 2022 that the yield on the US two-year note fell below that of the 10-year note, as disappointing job openings data fueled expectations for significant interest rate cuts from the Federal Reserve, according to a report from Bloomberg. Furthermore, the likelihood of a 50 basis-point cut occurring on September 18 increased to 45% by Wednesday afternoon, a rise from 38% the previous day, as indicated by the CME Group's FedWatch Tool.
Conversely, the probability for a 25 basis-point reduction decreased to 55%, down from 62% just a day earlier. Should the Fed foresee serious economic weaknesses on the horizon, it could implement a reduction greater than 25 basis points from the existing range of 5.25% to 5.5%. In the commodities market, West Texas Intermediate crude oil saw a decrease of 0.9%, trading at $69.68 per barrel. In additional economic news, new orders for factory goods in the US rebounded by an impressive 5% in July, exceeding expectations for a 4.8% increase as compiled in a Bloomberg survey.
This positive development followed a 3.3% decline in orders observed in June. Notably, when excluding a dramatic 34.7% rebound in transportation orders, new factory goods orders would have increased by only 0.4%, building on a minor 0.1% gain reported in June. Oxford Economics released a research note on Wednesday, stating that Federal Reserve rate cuts are anticipated to support a "broadening" in share-price performance.
They indicated that cyclical sectors are likely to thrive as economic activity shows resilience, with small-cap stocks poised to benefit as pressure on balance sheets diminishes. Market volatility measured by the CBOE's Volatility Index (VIX) saw a decline of nearly 1%, settling at 20.57, surrendering gains made earlier in the session. In the realm of company-specific news, Dollar Tree ($DLTR) experienced a significant downturn, with shares plummeting nearly 22% intraday, marking the worst performance on both the S&P 500 and Nasdaq indices.
This decline followed the company's announcement of reduced adjusted earnings for fiscal Q2, coupled with a downward revision of its full-year outlook. Similarly, Zscaler ($ZS) provided disappointing non-GAAP earnings guidance for fiscal Q1 and the full fiscal year 2025, leading to an 18% slump in its shares, ranking among the steepest decliners on the Nasdaq. On a more positive note, Boeing ($BA) successfully delivered an estimated nine 737 Max aircraft to China during August, the highest number achieved in nearly six years.
This news contributed to a 1.9% rise in Boeing's stock price, making it one of the top gainers on the Dow. In the precious metals market, gold appreciated slightly by 0.2% to $2,527.41 per ounce, while silver saw a more pronounced increase, climbing 0.9% to $28.60. In summary, the current market dynamics reflect a cautious yet evolving economic landscape, with significant implications for interest rates and investor strategies moving forward..