Jobs Report and Rate Hike Loom Over Markets

This week's job report will be closely watched by investors, particularly those expecting a rate hike to combat persistently high inflation. According to Fed Chair Kevin Warsh, the high inflation rate is an uncomfortable situation for the Federal Reserve. The bond market has already reacted, with the US 10-year Treasury yield rising to 4.73%, up by around 50 basis points from the start of the year.

The jobs report on Friday might reveal weakness in August's employment numbers, which could lead to selling pressure on bank stocks such as JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C). The increasing odds of a rate hike would put downward pressure on these stocks.

Additionally, the valuation for the AI business in SpaceX (SPCX) might be impacted by OpenAI's decision not to renew its deal with Cursor. According to OpenAI, SpaceX did not comply with its terms of service, and Cursor's access to OpenAI models will end on November 12.