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Job openings in the US fell by 384,000 to 9.6 million in March 2023, below market expectations.

• This is the lowest level since April 2021, indicating a possible cooling off in the labor market.
• Job openings decreased in transportation, warehousing, and utilities, but increased in educational services.
• The number of hires and total separations remained relatively stable at 6.1 million and 5.9 million, respectively.
• Within separations, the number of quits did not show significant changes, while layoffs and discharges increased.

The US stock market indices, including the S&P 500 Futures, Nasdaq, and Dow Jones, have all experienced losses, with declines of about 1.4%, 0.9%, and 1.3%, respectively. The lower job opening data indicates weakness in the labor market, and investors’ concerns have resurfaced about certain regional financial institutions following the second-largest US bank failure of FRB. PacWest and Western Alliance shares fell over 20%, and trading halted in those stocks.

Investors were also cautious about opening new positions before the two-day Fed meeting as a 25 basis point hike is expected by the majority of investors. Negative data such as job openings pressures the markets, which appears to have changed investors’ perception about the potential for markets to soar in response to a dovish tone from central banks.

In addition, the debate over the debt limit seems to be a tool to combat inflation lower, which in turn has put pressure on markets and prices as concerns about a recession reignite. However, the dollar has come under pressure, which has led to a rise in gold prices as investors seek safe-haven assets. A lower dollar may be beneficial in supporting commodities.

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