S&P 500 (SPY) Report – 10/05/23

Good morning traders!

The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it… 

US stock futures dip slightly this morning, with investors eagerly anticipating the crucial jobs data set to be released on Friday. Today, the weekly initial jobless claims reported a slight increase, with 207,000 claims for the week ending on September 30th. This was a minor rise from the previous week and was relatively aligned with the Dow Jones consensus estimate of 210,000. Despite the numbers being on par with expectations, some investors were hoping for data that would indicate a shift in the labor market and potentially halt the current rate trends affecting stocks.

In the news, Liz Young, SoFi’s head of investment strategy, expressed a cautious stance on CNBC’s “Closing Bell,” suggesting the current market uptick might be a temporary relief. This sentiment was further emphasized by the retreat in Treasury yields, which was influenced by ADP’s report indicating a mere 89,000 private job growths for September, a figure significantly lower than the Dow Jones’ 160,000 estimate. This data provided some reassurance to investors about the potential relaxation in the labor market.

Additionally, Wall Street is navigating the removal of Kevin McCarthy as the House Speaker, a move that, while unprecedented, might not have immediate repercussions. However, with U.S. government funding only secured until November 17, a potential shutdown could strain the U.S. economy, increasing the chances of a recession, even though financial markets have historically remained resilient during such shutdowns.

Thursday Economic Events:
Challenger Job Cut 7:30am ET
International Trade in Goods 8:30am ET
Initial Jobless Claims 8:30am ET – High Volatility Expected
EIA Natural Gas Report 10:30am ET

Fed Speaker Scheduled:
Loretta Mester 9:00am ET
Mary Daly 10:00am ET
Thomas Barkin 11:30am ET
Michael Barr 12:15pm ET


DailyBubble’s Disclaimer
This article provided by the DailyBubble team should only be considered as informational and/or entertainment by the reader. DailyBubble makes no representation to buy or sell any security or financial instrument within the article. Readers seeking investment advice should seek independent financial advice from a professional, and independently research and verify. The DailyBubble team wrote this article and may express its own opinions therein.

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