MARKET SNAPSHOT

U.S. stock indexes were narrowly mixed as markets waited for weekly and monthly employment data over the next few sessions. The 10-year Treasury yield moved closer to the two-year, as the curve inversion looks bound to end. Oil prices fell further as the market shrugged off comments that OPEC+ is considering delaying plans to unwind output cuts. Gold prices climbed as the dollar weakened.

MARKET WRAPS

EQUITIES

Worries about a softening labor market pushed the S&P 500 lower for a second consecutive day ahead of a key jobs report.

The S&P 500 dipped 0.2% and the Nasdaq Composite slid 0.3%. The Dow Jones Industrial Average added 0.1%.

Adding to slowdown fears, the Labor Department said U.S. job openings fell in July to 7.7 million. That was a bigger decline than economists expected and marked the lowest level since 2021.

Investors are on edge ahead of Friday's monthly jobs report, which could influence the pace of the Federal Reserve's expected rate cuts and signal whether the economy is closer to a recession or a soft landing.

"The print on Friday is going to be a major inflection point for the 'immaculate disinflation' narrative," said Adam Hetts, global head of multi-asset at Janus Henderson, referencing investors' ideal scenario in which inflation abates without a spike in unemployment.

Earlier Wednesday, Chinese shares ended lower, weighed by energy and real estate stocks. The tepid sentiment on Wall Street overnight spilled into Asia, sending regional markets broadly lower.

The benchmark Shanghai Composite Index fell 0.7%, the Shenzhen Composite Index declined 0.6% and the ChiNext Price Index slipped 0.1%. Hong Kong's Hang Seng Index gave back 1.1%.

Japan's Nikkei Stock Average closed 4.2% lower, mainly due to drops in technology-related stocks that took a hit following Wall Street's weakness overnight.

Australia's S&P/ASX 200 shed 1.9%, tumbling to its largest loss in more than a month as global equity markets reacted to worries about the health of the U.S. economy.

New Zealand's NZX-50 added nearly 0.2%, shrugging off the gloom engulfing other global equity markets amid strength in logistics and health-related stocks.

COMMODITIES

Oil futures settled lower, with U.S. benchmark prices dipping below $70 a barrel for the first time since December and global prices ending at their lowest since June - just a day after weak U.S. manufacturing data helped trigger a widespread selloff.

Pressure on crude was also tied to reports that a political standoff that had shut down Libyan crude exports and production was nearing a resolution. However, the possibility that oil producers may delay a fourth-quarter boost in oil output was somewhat supportive.

West Texas Intermediate crude for October delivery fell 1.6% to settle at $69.20 a barrel on the New York Mercantile Exchange. November Brent crude lost 1.4% to end at $72.70 a barrel on ICE Futures Europe.

"Global growth concerns married with headlines of increasing supply [are] proving to be a toxic mix for an oil market that is already feeling vulnerable," said Chris Weston, head of research at Pepperstone.

Gold futures rose amid uncertainty about Friday's non-farms payroll report.

Front month Comex gold for September delivery gained more than 0.1% to settle at $2493.40 per troy ounce.

"Safe haven flows are also jumping into gold ahead of this week's nonfarm payroll data, especially after the delayed-reaction market crash after the worse-than-expected numbers [in] last month's report," said Robert Yawger of Mizuho Securities USA.

TODAY'S TOP HEADLINES

Job openings fall to lowest level since 2021. It's getting harder to find work.

The numbers: U.S. job openings fell to their lowest levels in 3 1/2 years, returning to prepandemic levels in another sign the labor market has softened and that people can't find work as easily.

Job postings fell to 7.7 million in July from a downwardly revised 7.9 million in June, the Labor Department said Wednesday. That's the fewest openings since January 2021.

New openings have fallen steadily from a record 12 million in 2022. Fewer industries are hiring and jobs have become harder to find.

Two-thirds of Fed districts report flat or declining activity, Beige Book says

Nine out of 12 Federal Reserve regional districts reported flat or declining economic activity in August, according to the central bank's so-called Beige Book report released on Wednesday. That's up from five districts that reported weak conditions in the last report in mid-July.

The four districts that have experienced weaker conditions than in the prior report appeared to be Philadelphia, Richmond, Atlanta and St. Louis.

Across the country, employment held steady but consumer spending ticked down in most districts, the survey found.

OPEC+ Members Consider Delaying Production Increase, Delegates Say

OPEC+ members are debating delaying a production increase that was supposed to start next month amid concerns over weak oil prices, delegates in the producers' alliance said Wednesday.

Prices are languishing at around $73 a barrel-their lowest level in nine-months-due to weak demand and a lack of major geopolitical disruptions. Libyan output was briefly disrupted in recent days over a government payment dispute before being quickly restored.

Saudi Arabia, the group's kingpin, needs prices at $85 to help fund its economic transformation, analysts say.

U.S. Steel Warns of Plant Closings if Sale Collapses

U.S. Steel's chief executive said the company would close steel mills and likely move its headquarters out of Pittsburgh if its planned sale to Nippon Steel collapses.

CEO David Burritt said the nearly $3 billion that Japan-based Nippon Steel has pledged to invest in the Pittsburgh company's older mills is critical to keeping them competitive and maintaining workers' jobs.

"We wouldn't do that if the deal falls through," Burritt said in an interview. "I don't have the money."

Verizon Nearing Deal for Frontier Communications

Verizon is in advanced talks to acquire Frontier Communications in a deal that would bolster the company's fiber network to compete with rivals including AT&T, according to people familiar with the matter.

An announcement could come this week, granted the talks don't hit any last-minute snags, the people said.

A deal would be sizable, given Frontier's market value of over $7 billion. The company, cobbled together by several deals over the years, provides broadband connections to about three million locations across 25 states.

(END) Dow Jones Newswires