"With government data releases halted by the shutdown, markets turned to private indicators for clues about the economy's health. Payroll provider ADP reported a surprising 32,000 job losses in September-far below expectations for job gains-fuelling expectations for Fed rate cuts. However, several Fed officials maintained a cautious tone. Chicago Fed President Austan Goolsbee warned of persistent services inflation, while Dallas Fed's Lorie Logan suggested a slower path to policy normalization."
"The S&P 500 also finished higher, supported by optimism surrounding easing monetary policy. Commodity markets told a mixed story. West Texas Intermediate (WTI) crude oil prices fell more than 7% after OPEC+ indicated it would raise output in November. Gold, on the other hand, climbed over 3%, extending its impressive year-to-date rally, while copper surged 7%, signalling potential resilience in industrial demand."
U.S. equity indices advanced despite a partial government shutdown, with the Nasdaq leading as technology and growth stocks outperformed and the Russell 2000 rising on expectations that lower borrowing costs would aid domestic firms. Investors viewed weaker labour data and a surprising ADP report of 32,000 September job losses as increasing the likelihood of an October Fed rate cut. Commodity moves were mixed: WTI crude fell over 7% after OPEC+ signalled higher output, while gold rose over 3% and copper jumped 7%. Several Fed officials cautioned on services inflation and a slower normalization path, and Treasury yields declined across the curve.
Read at London Business News | Londonlovesbusiness.com
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