WS #15242
The US economy added only 29,000 jobs in September, a massive miss against the 89k consensus, causing bond yields to drop and equity markets to pivot from inflation fears to recession concerns. This data has effectively killed the case for a 50bps rate hike, with markets now pricing an 85% chance of a hold. The implication is a sharp rotation away from rate-sensitive sectors like financials and into defensive growth or value plays.
US Labor Market Shock
The US economy added only 29,000 jobs in September, a massive miss against the 89k consensus, causing bond yields to drop and equity markets to pivot from inflation fears to recession concerns. This data has effectively killed the case for a 50bps rate hike, with markets now pricing an 85% chance of a hold. The implication is a sharp rotation away from rate-sensitive sectors like financials and into defensive growth or value plays.