💰Equity market looks to Job data🚘

The stock market fell on Thursday on the Fed and incoming job data. Indeed, some Fed members made hawkish comments on the path of interest rates and investors took the chill wind in good faith and paused the risk-on sentiments. 

Once again, the gathering of dark clouds signalled more pain ahead unless incoming data showed weakness in demands and inflation slowing. The 2-year Treasury yield rose to 4.247%, although it is still shy of the peak level of 4.3% seen in late September. 

The spiral effect of a high yield feeds into the dollar strength, which would likely impact earnings for major corporations in the coming earnings season. Any indications of a bounce in yield and dollar will pressure stock evaluation. 

Pika World is maintaining an earning recession risk in our outlook. 

🧮All eyes on today’s job data🔦

We will welcome the September jobs reports, and the expectation is for an addition of 250,000 jobs. It will be a significant fall from the 315,000 seen in August, and any considerable decline will be a relief for the markets as it will dilute the wage-pull inflation spiral out of the game. 

Once again, the bad news is good news. 

💎Cryptocurrency: Big move, perhaps pending job data🕹

Major cryptocurrency has been relatively stable on Thursday as investors await the job data. Indeed, Bitcoin has been increasingly dependent on the macroeconomic environment, and today’s job data could be yet another catalyst for movement. 

Early in the week, we saw Bitcoin rising above the psychology level of $20,000 with a rush into stocks after a major recovery in equities. While the equity market is losing some steam, strength and momentum in cryptos are still holding well. 

Perhaps if we do not see any dose of firm hiring data, we could see a healthy consolidation at the current level. 

📮What’s on the menu today?📖

At 8.30 pm, we will receive the average hourly earnings on a monthly basis. The expectation is a 0.3% growth, similar to the prior period. Any upside is likely to stir the inflation fear once more. 

The Non-Farm payroll data will be released, too, as guided by our update for a 250K addition in jobs. Pika World expects the unemployment rate to maintain at 3.7%.