Stocks Recover Losses While the Fed Rate Path is in Effect – Europe Market Wrap

Stocks recovered partially on Monday after a selloff prompted by slowing US job growth, leaving economists and traders divided on how aggressively the Fed will lower interest rates.

Nasdaq 100 futures rose roughly 1% after the real index fell sharply last week, the most since November 2022. Bonds reversed some of their recent gains, with the 10-year Treasury yield rising 5 basis points, the first increase in five days.

US statistics released Friday showing weaker payroll growth bolstered the perception that the labour market is weakening, sending stocks tumbling. Traders reacted by raising their bets for a Fed rate decrease of 50 basis points this month.

September has been a turbulent month for markets, with stocks and commodities both down amid concerns about slowing global growth. The VIX remained higher, having closed at its highest level in a month on Friday.