US labour market..........5 Oct 2022 04:27
..........is cooling and hopes that the FED will take their foot off the gas will help to fuel a rise in Futures.
Reuters:
Investors suffering through a bruising year for markets are hoping that recent signs of wobbling economic growth will force the Federal Reserve and other global central banks to take their foot off the gas in the fight against inflation, sparking sharp rebounds in stocks and bonds.
The S&P 500 is up nearly 6% over the last two days, following a brutal September in which it fell 9.3% alongside declines in other global equity benchmarks. Yields on U.S. Treasuries, which move inversely to prices, have plummeted by 33 basis points in October from multi-year highs hit last month.
Investor expectations of how high the Fed will raise rates in its battle against inflation have slipped in recent days, amid signs that growth in the U.S. may finally be slowing. Investors in the futures markets now expect the fed fund rate to peak at 4.5% next year, compared to the expected peak of about 4.7% they were pricing in last week.
"The markets are sniffing out a blink by the Fed,” said Jim Paulsen, chief investment strategist at the Leuthold Group. “If they pause here, not only does the rate pressure suddenly drop but maybe you end up with a mid-cycle slowdown, rather than a recession."
Expect another blue day today.
Damers.