US Stocks Hold Breath Ahead of Jobs Report as Rate Hike Odds Rise
The US stock market is showing caution ahead of the September jobs report, with Dow Jones and S&P 500 futures trading volatile. Investors are awaiting the nonfarm payroll report to gain fresh clues on the US Federal Reserve's upcoming policy stance.
According to analysts at MUUFG, the nonfarm payrolls (NFP) is expected to grow by 90k in September, slightly above the median estimate of 85k from Bloomberg contributors. The unemployment rate is expected to remain at 4.1% in September, matching the median estimate.
The market has been predicting a 75% probability of a rate hike from the Fed this month. However, a strong jobs report may not elicit a strong market reaction due to the larger than normal rates move and its reversal in the day leading up to the NFP report.