Economic Data Tests Stocks
U.S. Jobs and Inflation Data Are Set to Test Market Resilience
Anonymous
Trending on XFRB Interest Rate Policy and Fed Flexibility
U.S. employment and inflation reports are expected to shape expectations for the Federal Reserve’s next move, with September payrolls due October 2 and investors weighing the possibility of another rate hike in October. A strong jobs report could keep that hike in play, while unexpectedly robust data or persistent inflation may put pressure on stocks already near record levels and concentrated in technology shares. Investors are also watching a key inflation measure, Treasury yields that have climbed sharply, and global pressures including energy prices and the Middle East conflict.
Key Points
1
A Reuters poll of economists expects September payroll growth of 100,000 and an unemployment rate of 4.2%; investors will also get August JOLTS job-openings data and an ADP report ahead of the payroll release.
2
The 30-year Treasury yield reached its highest level in more than 20 years, while the benchmark 10-year yield climbed well above 5%, adding pressure to equities despite their resilience.
3
Beyond the U.S. releases, the coming week’s market calendar includes eurozone inflation data, China’s PMI reading and an Australian central-bank decision.
4
Investors were also focused on Asian data: Citi forecast South Korea’s September inflation at 3.0%, while Indonesia’s September inflation was expected to edge up to 3.3%, mainly because of higher food prices.
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