Bonds & Stocks
US Treasuries rallied after a fresh batch of data reinforced expectations of the Federal Reserve cutting interest rates later this month. Stock futures remained lower as the US government shutdown threatened a blackout in crucial economic reports that the central bank needs to make its decisions. Treasury yields fell across the curve, with the 10-year rate declining to 4.11%. S&P 500 futures retreated 0.4% after the benchmark’s strongest September in 15 years. Gold rallied while the Bloomberg Dollar Spot Index fell for a fourth day.
Economy
The ADP report on Wednesday showed payrolls at US companies unexpectedly dropped in September, consistent with other data over the past month indicating that the labor market is slowing. Traders accordingly added to bets on two more Fed rate cuts this year. While the Bureau of Labor Statistics’ nonfarm payrolls data will likely be delayed because of the shutdown, traders have already received some snapshots of the jobs market this week.
World
Arab and Muslim national leaders are pushing Hamas to accept the Gaza plan unveiled by US President Donald Trump this week, saying the need to end the fighting surpasses concern about the finer details. While some aspects of the 20-point proposal differ from what Trump agreed with those leaders at a recent meeting in New York, they are united behind the goal of ending Israel’s military offensive in the shattered territory, according to people with knowledge of the situation.