US Jobs Report Influences Markets: Nasdaq 100 Hits Record Close

Employment Report Overview

The US employment report for September revealed a disappointing growth in nonfarm payrolls, with only 29,000 jobs added compared to the expected 90,000. Revisions to previous months' data also showed a downward trend, with August payrolls adjusted down from 162,000 to 133,000. Additionally, wage growth slowed, with average hourly earnings only increasing by 0.1% for the month, below the anticipated 0.3%.

Market Reactions

Initially, the report led to lower Treasury yields and a weaker US dollar, as traders adjusted expectations for an October Federal Reserve rate hike. However, by the end of the session, Treasury yields reversed course, with the 2-year yield rising to 4.8414% and the 10-year yield climbing back near 5.30%. Meanwhile, the major US stock indices closed higher, with the Nasdaq 100 hitting a record closing high of 30,807.93, although the Nasdaq Composite fell short of its previous closing record.

Currency Movements

The US dollar depreciated against several major currencies despite rising Treasury yields. The Australian dollar, British pound, and Swiss franc all gained against the dollar, while the Canadian dollar was the exception, with USDCAD ending higher at 1.4251 as lower oil prices weighed on the Loonie.

Looking Ahead

Next week will feature key economic indicators, including the US ISM services report, Fed minutes, and Canadian employment data. Market participants will focus on inflation expectations from the University of Michigan sentiment survey, which could impact future monetary policy discussions. Traders are cautious as elevated Treasury yields and the rebound in oil prices suggest ongoing uncertainties in the market.