WS #15247
The US economy added only 29,000 jobs in September, a massive miss against the 89,000 consensus, accompanied by an unemployment rate rise to 4.2% and significant downward revisions to prior months. This data has effectively removed the probability of an October interest rate hike, causing the dollar to fall and Treasury yields to drop. The resulting monetary easing expectations are driving a broad risk-on rally in US equities, particularly in growth and technology sectors, as the market prices in a more dovish Federal Reserve stance.
US Labor Market Deterioration & Fed Pivot
The US economy added only 29,000 jobs in September, a massive miss against the 89,000 consensus, accompanied by an unemployment rate rise to 4.2% and significant downward revisions to prior months. This data has effectively removed the probability of an October interest rate hike, causing the dollar to fall and Treasury yields to drop. The resulting monetary easing expectations are driving a broad risk-on rally in US equities, particularly in growth and technology sectors, as the market prices in a more dovish Federal Reserve stance.