US Jobs Report and Inflation Data to Test Fed Rate Hike Bets
The US stock market has been steady lately, but beneath the surface, signs of fragility are emerging.
Rising bond yields and uneven sector performance indicate that the market may be more vulnerable than it appears at first glance.
The upcoming jobs report and inflation data will be crucial in determining whether the Federal Reserve (Fed) will continue raising interest rates, which could put pressure on the stock market.
The S&P 500 has been hovering near record levels, with shares of technology companies and artificial intelligence-related businesses supporting the market.
Investors are closely watching the September jobs report due on October 2, as well as data on the personal consumption expenditures price index (PCE) due on Wednesday.
Bond yields have been rising, with the yield on 30-year bonds reaching its highest level in over 20 years and the yield on 10-year securities climbing above 5%.
Matthew Maley warned that after several months of the bond market moving against its previous trend, conditions could deteriorate quickly.