Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are down by over 1% on Monday as the trading week kicks off.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
The weakness is being led by the tech sector, with Nvidia (NVDA), Palantir (PLTR), Apple (AAPL), and Advanced Micro Devices (AMD) all deep in the red. In addition, falling prospects of a December rate cut are dragging the market lower. The odds currently sit at 44.9%, down from 62.4% a week ago and 93.7% a month ago, according to CME’s FedWatch tool. Lower interest rates generally benefit the economy by making it cheaper to borrow capital, stimulating spending and investment.
Investors Look ahead to Key Jobs Data
The September jobs report, which was delayed due to the government shutdown, will be published by the Bureau of Labor Statistics (BLS) on Thursday at 8:30 a.m. Eastern Time. The report, which includes nonfarm payrolls and the unemployment rate, will provide the Fed with crucial data to guide its interest rate decision. That comes as data released by the private sector during the shutdown evidenced continued jobs weakness.
While rate cuts typically support the labor market, Kansas City Fed President Jeff Schmid warned last week that lower rates won’t “do much to patch over any cracks in the labor market” due to structural issues caused by technological innovation and immigration policies.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.