Bonds & Stocks
This month’s blistering rally in stocks struggled to gain much traction, with traders giving a lukewarm response to data that bolstered bets the Federal Reserve is done with its hiking cycle. Signs of buyer exhaustion emerged after a rally that put the S&P 500 less than 5% away from its all-time high, with equities seeing mild gains. Trading volume might be higher than usual, with the review of MSCI equity indexes at the close. Treasuries also reverse course at the end of the month, with yields rising on speculation the market has moved too far, too fast in projecting Fed rate cuts.
Economy
US consumer spending, inflation and the labor market all cooled in recent weeks, adding to evidence that the economy is slowing. Inflation-adjusted personal spending rose 0.2% last month after a downwardly revised 0.3% advance in September, according to the Bureau of Economic Analysis. Separate figures Thursday showed recurring applications for unemployment benefits rose to the highest in about two years.
World
One of China’s largest investment banks has warned its analysts against making any bearish calls and to avoid showing off their lavish lifestyle, as Beijing continues to clamp down on well-paid bankers. Analysts at China International Capital Corp. are barred from sharing negative comments about the economy or markets in both public and private discussions, according to an internal memo sent to the research department this month and seen by Bloomberg News. Employees should also avoid wearing luxury brands or revealing their compensation to third parties, the memo said.