All isn’t lost…
October got off to a rocky start. Then, yesterday, markets came in with an unexpected win.
The ISM report showed that the nation’s services sector performed worse than expected in September. And far down from August’s 56.4.
They were the worst numbers in three years. A strong hint that domestic growth is in fact slowing.
While investors resigned themselves to a third straight loss, the markets did the unexpected. Both the NASDAQ and DJIA were trading down. Then they ended the day with net gains.
In fact, the reversal equaled the best turnarounds seen in months. For the NASDAQ Composite Index, it was the best performance since April 2018.
What’s fueling the optimism with so many weak indicators?
Some think investors are pinning their hopes on continued Fed easing.
In just a week, Wall Street expectations for a 25 basis-point cut jumped from 49% to 90.3%.
Thursday’s bond yield drops support this theory.
So, what’s next?
That all depends on today’s jobs report.
It’s the make-or-break moment investors are waiting for.
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