Investors Brace for August CPI After 162,000 Jobs Gain as 10-Year Yield Nears 5%
Updated
Updated · CNBC · Sep 4
Investors Brace for August CPI After 162,000 Jobs Gain as 10-Year Yield Nears 5%
3 articles · Updated · CNBC · Sep 4
Summary
Fed hike bets for the Sept. 15-16 meeting jumped to 58% from 49.4% after August payrolls rose 162,000, far above the 53,000 forecast.
Thursday's PPI and Friday's CPI now stand as the last major data before the Fed decision, with traders focused on whether inflation confirms a still-stable labor market.
Treasury yields are adding pressure: the 10-year hit its highest since November 2023 and the 2-year its highest since January 2025 amid global bond selling and elevated energy prices.
Stocks slipped as rate expectations reset, though the S&P 500 still ended the week up 0.1%, the Nasdaq gained 0.4%, and the Dow fell 0.3%; U.S. markets are closed Monday for Labor Day.
Could the Federal Reserve's heavy reliance on backward-looking employment data trigger a policy mistake during their mid-September meeting?
With job gains concentrated in lower-wage sectors and wages lagging inflation, is the seemingly strong labor market masking underlying economic weakness?
Can the ongoing AI boom sustain stock market valuations if the 10-year Treasury yield breaches the critical five percent threshold?