Soft Jobs Report Cools Hike Bets as Yields Hold Near Multi-Decade Highs - Penn Mutual Asset Management

Last week ended with a weaker-than-expected September employment report that eased pressure on the Federal Reserve (Fed) to raise rates again. Nonfarm payrolls rose just 29,000 versus roughly 84,000 expected, the unemployment rate ticked up to 4.2% and July and August were revised down by a combined 60,000. 1 Odds of an October hike fell to about 14% from roughly 70% earlier in the week. 2 Treasury yields dropped sharply on the news, with the 10-year falling to 5.16% before rebounding to close near 5.28%. 3,4 Equities were mixed for the week. The Nasdaq Composite Index gained 0.6%, while the S&P 500 Index slipped 0.3% and the Dow Jones Industrial Average fell 1.3%.