"Investor sentiment turned volatile on Friday following the release of August labour market data, which painted a weaker-than-expected picture. Nonfarm payrolls rose by just 22,000, far below expectations, while the unemployment rate climbed to 4.3%, its highest since 2021. Downward revisions to June and July further underscored the slowdown. ADP's private payrolls report showed a similar trend, with only 54,000 jobs added, and job openings fell to their lowest level since 2024. For the first time since 2021, the number of unemployed Americans exceeded available job openings."
"Markets quickly adjusted expectations for monetary policy. Futures tracked by the CME FedWatch tool priced in a 100% chance of at least a 25-basis-point rate cut at the Federal Reserve's next meeting, while the probability of a 50-basis-point move rose to 10%. Treasury yields declined sharply, with the 10-year note falling to its lowest since early April."
U.S. equity markets ended the holiday-shortened week mixed, with most indexes registering modest gains. The Nasdaq Composite advanced 1.14%, led by Apple and Alphabet, while smaller-cap stocks benefited from rate-sensitive optimism and the S&P 500 rose 0.33%; the Dow slipped 0.32%. August labour data showed a sharp slowdown: nonfarm payrolls rose by 22,000 and the unemployment rate climbed to 4.3%, with downward revisions to prior months and falling job openings. Market-implied Fed-cut odds jumped, driving Treasury yields lower and the 10-year to its weakest level since April. ISM manufacturing remained in contraction while services expanded. European equities were broadly weaker amid growth concerns and a stronger euro.
Read at London Business News | Londonlovesbusiness.com
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