The data is this bad, yet the market is betting that the probability of keeping the benchmark interest rate unchanged in October has somehow surged to 83%.
September nonfarm payrolls added only 29,000 jobs, while the unemployment rate rose to 4.2%, showing employment has clearly slowed down. In the past, the market always liked to spin bad news as a rate-cut positive—but Fed officials are still saying hikes or a pause are both possible, and inflation remains a core concern. The curse of high interest rates can’t be removed at all.
The shadow of recession is draining risk appetite, and the spigot for liquidity easing is firmly locked. Without fundamentals providing support and without cheap liquidity to prop the market up, how long can stretched valuations at elevated levels hold?
#MARKET
September nonfarm payrolls added only 29,000 jobs, while the unemployment rate rose to 4.2%, showing employment has clearly slowed down. In the past, the market always liked to spin bad news as a rate-cut positive—but Fed officials are still saying hikes or a pause are both possible, and inflation remains a core concern. The curse of high interest rates can’t be removed at all.
The shadow of recession is draining risk appetite, and the spigot for liquidity easing is firmly locked. Without fundamentals providing support and without cheap liquidity to prop the market up, how long can stretched valuations at elevated levels hold?
#MARKET