US equities slipped Friday after August Non-Farm Payrolls came in far stronger than expected, lifting the probability of a Fed rate hike to around 60%. Treasury yields and the Dollar both rose, while oil extended gains on escalating Middle East tensions and gold fell under dollar pressure. Markets may see thinner liquidity today with US and Canadian markets closed for a holiday.
📊 Equities
US equities moved lower in trading on Friday as stronger-than-expected employment data pushed expectations for a further Fed rate hike higher. Non-Farm Payrolls rose by 162k jobs in August, well above economists’ expectations for a 56k increase, with markets now pricing the probability of a rate hike at around 60%.
🛢️ Oil
Oil prices continued to push higher as hostilities in the Middle East intensified.
🥇 Gold
Gold came under pressure from the stronger dollar.
💵 FX & Bonds
Treasury yields moved higher once again, while the US dollar jumped against most of the major currencies.
| Market | Change | Close |
|---|---|---|
| Dow Jones | -0.51% | 53,414 |
| S&P 500 | -0.38% | 7,718 |
| Nasdaq | -0.29% | 26,506 |
| US Dollar Index (USD) | +0.25% | 99.16 |
| US Treasury 2Y | +3.0 bps | 4.366% |
| US Treasury 10Y | +1.4 bps | 4.782% |
| Brent Crude | +0.80% | $96.28 |
| WTI Crude | +0.20% | $91.48 |
| Gold | -1.01% | $4,427.69 |
📌 Today’s Focus
Markets are set for another potentially volatile start to the week, with traders reacting to further geopolitical developments over the weekend, including reported ship strikes in the Strait of Hormuz from both sides. Liquidity could also be thinner than usual later in the day with both the US and Canadian markets closed for a bank holiday.
🔹 US Session – All Day – US – Bank Holiday
🔹 US Session – All Day – Canada – Bank Holiday