Mid-Week Market Minute 10.2.24

Stocks Slip; Key Nonfarm Payrolls Report on Friday

Stocks slipped in early trading this week after closing the door on a strong September. For the month, the S&P 500 was higher by about 2.1% in total return, while the Russell 2000 was higher by 0.7%. On the international front, emerging markets were the star performer, up 6.7%. 

As we turned to October, escalating tensions in the Middle East between Israel and Iran have dampened sentiment. Oil prices have risen in response, with a barrel of WTI Crude trading around $72 mid-week. Meanwhile, the potential for a prolonged port strike in the U.S. could hamper supply chains. Separately, the CBOE Volatility Index (VIX) rose above 19 this week, indicating investors are bracing for volatility on the horizon.

Looking ahead to the rest of the week, all eyes will be on nonfarm payrolls Friday. The labor market and employment situation in the U.S. has been at the top of the list for the Federal Reserve and will continue to serve as a primary input into the future path of interest rates. As a precursor to the nonfarm payrolls report, the ADP employment report on Wednesday came in better than expected, with private payrolls increasing by 143,000 in September, surpassing expectations of 125,000. On Friday, the markets are looking for 150,000 new jobs added in September and expect the unemployment rate to remain unchanged from August at 4.2%.

Source: GSAM, CNBC, JPMorgan, FactSet

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