Bonds & Stocks
A rally in stocks powered ahead as optimism over prospects for the artificialintelligence technology that has fueled the bull market overshadowed waning expectations for a Federal Reserve rate cut. Treasury two-year yields, which are more sensitive to imminent Fed moves, slid two basis points to 3.57%. The dollar wavered.
Economy
US job growth picked up in September and the unemployment rate ticked higher, suggesting the labor market showed signs of stabilizing before the government shutdown. Nonfarm payrolls increased 119,000 after the prior month was revised to a decline, according to Bureau of Labor Statistics data out Thursday. The unemployment rate ticked up to 4.4%, the highest in nearly four years and reflecting an increase in the size of the labor force.
World
Japan’s pro-stimulus Prime Minister Sanae Takaichi is set to unveil the largest spending plan since the pandemic era, in a move that adds to her reputation for expansive fiscal policy. Her stimulus package will include ¥17.7 trillion ($112 billion) of spending through what will essentially be the extra budget, according to documents seen by Bloomberg Thursday. That marks a jump from the ¥13.9 trillion former Prime Minister Shigeru Ishiba unveiled last year. Given the larger size, additional bond issuance will also be bigger than last year, according to people with knowledge of the matter — putting more pressure on the country’s finances.