Markets Tense Up Before Crucial Payrolls Data Release
This Friday’s statistics will guide November’s Federal Reserve meeting decisions.
Despite markets recovering slightly from the recent severe blows, the anticipation of Friday’s monthly non-farm payrolls data keeps traders on tenterhooks. If it diverges from expectations, it could significantly impact stock and bond yields, further guiding the Federal Reserve’s future moves.
US stock benchmarks indicated a slight rebound on Thursday after reports showed stable weekly unemployment numbers. However, the S&P 500 remains vulnerable, currently down by approximately 8% since July. If the upcoming payroll report is hotter than anticipated, it may affect yields negatively.
Earlier this week, bond markets were impacted by an unanticipated rise in August job vacancies. However, they regained some stability after private payroll figures revealed the lowest job addition since the beginning of 2021. Even so, overall market sentiments are cautious, awaiting Friday’s labor data to gauge the Federal Reserve’s potential next steps.
On the brighter side, Thursday’s unemployment data showed only a minor increase, with 207,000 claims filed as of Sept. 30. Despite the calm, analysts remain wary of the implications of prolonged higher interest rates on the economy.
Key market updates:
- Oil prices dropped, with WTI crude below $83 per barrel, its lowest since late August.
- The dollar fell against major global currencies.
- Cryptocurrencies showed a decline with Bitcoin at $27,533.42 and Ether at $1,618.33.
- In bond markets, the US 10-year yield dipped slightly, while Germany and Britain’s 10-year yields also saw a decline.
- Commodity prices indicated West Texas Intermediate crude dropping by 2.3%, and gold futures remained steady.
Other significant events to watch:
- China’s week-long holiday.
- Germany’s factory orders and US employment rates to be released on Friday.
In current stock movements:
- S&P 500 and Nasdaq 100 showed little change.
- The Dow Jones saw a 0.1% rise, and the MSCI World index increased by 0.4%.
