💰Equity market rally paused🔫

The stock market was generally in the red but pared most of the losses in the after-hours as investors took a breath to re-assess the economic landscape. Counters that were heavily oversold saw some support. 

While bond yields were still elevated, they have come down from their highs, reflecting the expectation that the Fed may not be as aggressive as some investors worried about. 

It is what some commentators would call the “peak hawkishness”. Moreover, recent data have shown that economic demand is moderating, which could hint at a slippery downward slope for inflation, helping to cool the pace of the rate hike. 

🎁Job data on Friday is a pivotal point🗽

We will need to look out for Friday’s job data. The economy is expected to add around 250,000 jobs in September, less than those we have seen in August at 315,000. Market participants want a weakening labour market and slowing inflation to help sustain the “peak hawkishness” narrative. 

📮What’s on the menu today?🔦

At 8.30 pm, we will receive the Initial Jobless Claims, which we expect to be hovering around 1,345K, not far from the 1,347K in the prior period. 

Some Fed members will be speaking, namely the Chicago Fed President, Evans, at 1 am and Fed Governor Cook at 1 am.