The Market Brief
Hey team. The market is adjusting to the recent strong job numbers and gearing up for the inflationary reports later in the week.
Let’s recap Monday’s session, how it unfolded, and what we’ll be looking at moving forward.
Macro Viewpoint
U.S. stock index futures rose on Tuesday, rebounding after the previous session's decline, as investors looked ahead to key inflation data and the start of the third-quarter earnings season later this week for guidance on the future direction of interest rates.
All three major indexes fell by roughly 1% on Monday, as rising Treasury yields, worries over escalating conflict in the Middle East, and a reassessment of U.S. interest rate expectations weighed on equities.
Attention will now shift to the upcoming U.S. consumer inflation data, expected to ease to 2.3% year-on-year, down from the previous 2.5%.
Traders are currently pricing in a rate cut of less than a quarter-point at the Federal Reserve's November meeting, with expectations of around 48 basis points of policy easing by the end of the year.