BREAKING: European markets are displaying a calmer risk sentiment today, following a tumultuous trading session in the US. On October 3, 2023, the DAX plunged over 2% at the close, reflecting the broader global bond rout that is impacting stock performance. Traders are now turning their attention to crucial US labor market data set to be released this week.
After a late dip buying surge on Wall Street, US stocks managed to end the day on a slightly positive note. However, the focus is shifting sharply to upcoming job reports, with the S&P 500 futures rising by 0.1% and Nasdaq futures up by 0.2% today, despite the Nasdaq experiencing a 0.8% decline yesterday.
The bond market has already made its concerns clear, with 30-year yields in the US climbing to 4.988%, nearing the pivotal 5% mark. Economists warn that this threshold could trigger significant market shifts.
As traders brace for key data releases, the JOLTS job openings report will be released later today, followed by the ADP employment change and weekly initial jobless claims tomorrow. The ADP report has been delayed by a day due to a US holiday on Monday. Yet, the spotlight remains on the upcoming non-farm payrolls report on October 6, 2023, which is expected to be a decisive factor for market sentiment this week.
Analysts, including Justin Low from investinglive.com, stress that the upcoming data will either bolster confidence in the markets or lead to further volatility. With traders on edge, expect a cautious atmosphere as the week unfolds.
Stay tuned for updates as these critical reports are released, which will undoubtedly shape market trends moving forward.
