S&P 500 Reaches All-Time High before NFP – US Market Wrap

Three pieces of data released to Wall Street traders ahead of Friday’s jobs report supported the idea that the job market is cooling, which kept expectations on rate reduction by the Federal Reserve alive and sent equities and Treasuries higher.

Ahead of data that is anticipated to prolong the poorest period of US job growth since the pandemic began, the most recent hiring and unemployment claims numbers were released. The yield on the Treasury two-year note dropped to its lowest level in almost a year. The S&P 500 reached a record high, up around 1%. A Fed cut this month is nearly entirely priced into the money markets, and by year’s end, and see at least two.

Employers in the United States exhibited little enthusiasm to hire workers in August, and the unemployment rate likely rose to a nearly four-year high, adding to indications of a more depressed job market.

After dropping rates by a full percentage point last fall, Fed policymakers have kept them stable this year due to concerns that tariffs may revive pricing pressures. However, as labour market problems become more obvious, officials are widely expected to cut borrowing costs within the next two weeks.

As traders prepared for the critical jobs report, President Donald Trump’s nominee to fill a vacancy on the Fed’s Board of Governors reaffirmed his commitment to central bank independence. Stephen Miran also stated that a central bank’s most essential role is to prevent depressions and hyperinflation.