NEW YORK, June 5 ― US stocks ended a shade higher yesterday following softer-than-expected labour market data that reaffirmed expectations of an interest rate cut by the Federal Reserve.

Data yesterday showed that US job openings fell to their lowest level in more than three years in April, signalling an easing in labour market tightness that supported a Fed rate cut this year. The US Treasury yields slipped following the report.

Wall Street's main indexes gained ground after paring earlier loses. Equities in real estate and consumer staples sectors advanced ahead of others, while materials and energy stocks were the biggest losers.

The labour market data was the latest in a string of recent reports that pointed to cooling US economic growth. Data on Monday showed that US manufacturing activity had slowed for the second straight month in May.

"What we've seen in the data so far this week is that it's been relatively weak, starting with manufacturing PMI and job openings today,” said James St. Aubin, chief investment officer at Sierra Mutual Funds in Santa Monica, California.

"That has had a total effect of helping the rally in the bond market; but for the stock market, it's a double-edged sword because they're looking for a rate cut announcement, which has a rising probability with weaker data,” St. Aubin added.

Market expectations for a September rate reduction now stand around 65 per cent, versus below 50 per cent last week, according to the CME's FedWatch tool. The closely watched non-farm payrolls data for May is due on Friday.

The Dow Jones Industrial Average rose 140.26 points, or 0.36 per cent, to 38,711.29, the S&P 500 gained 7.94 points, or 0.15 per cent, to 5,291.34 and the Nasdaq Composite gained 28.38 points, or 0.17 per cent, to 16,857.05.

Megacap technology stocks, including Amazon.com, Alphabet, Nvidia and Microsoft, ended higher after losing ground early in the session.

Oil giants Exxon Mobil and Chevron fell 1.6 per cent and 0.8 per cent, respectively, as demand concerns weighed on crude prices.

Bath & Body Works slumped 12.8 per cent after a lower revision to its quarterly profit forecast. Axos Financial dropped after Hindenburg Research disclosed a short position in the lender.

Paramount Global fell 4.4 per cent after the media conglomerate said it was exploring strategic options or a joint venture for its Paramount+ streaming service.

Declining issues outnumbered advancers by a 1.32-to-1 ratio on the NYSE. On the Nasdaq, 1,468 stocks rose and 2,762 fell as declining issues outnumbered advancers by a 1.88-to-1 ratio.

The S&P 500 posted 19 new 52-week highs and 6 new lows while the Nasdaq Composite recorded 40 new highs and 134 new lows.

Total volume of shares traded across US exchanges was about 10.6 billion, compared with the 12.6 billion average over the last 20 trading days. ― Reuters