On October 7, the U.S. September non-farm payrolls report revealed an unexpected increase of 254,000 jobs, with the unemployment rate dropping to 4.1%. This data reinforced expectations of a healthy economic soft landing and led the market to retract bets on a significant interest rate cut in November. Fueled by optimistic expectations surrounding the economic outlook, U.S.
stocks opened higher and closed with gains on Friday. The S&P 500 rose by 0.90%, concluding the week up 0.22%. The Nasdaq saw an increase of 1.22%, ending the week with a minor gain of 0.1%. Meanwhile, the Dow Jones climbed by 0.81%, reflecting a slight weekly rise of 0.09%. Notably, the China concept stock index surged over 3% and nearly 12% for the week.
The cryptocurrency market shared in this positivity, with Bitcoin climbing back above $63,000, trading at $63,859 at the time of reporting, which narrowed its weekly decline to 1.03%. Ethereum was priced at $2,507, with its weekly drop also narrowing to 4.18%. In the foreign exchange and commodities markets, safe-haven demand alongside positive economic data led the U.S.
dollar index to rise for five consecutive days, reaching a seven-week high. Non-U.S. currencies faced challenges, as the euro fell by 1.8% against the dollar for the week, while the British pound experienced a more significant drop of 2%. The robust employment data effectively eradicated expectations for a significant rate cut by the Federal Reserve in November, resulting in both the dollar and U.S.
Treasury yields rebounding. This upward momentum pressured gold prices, causing spot gold to drop by 0.5% for the week, thereby ending a three-week winning streak. Furthermore, concerns regarding potential supply disruptions due to escalating tensions in the Middle East prompted a five-day rise in oil prices, with Brent crude gaining over 9% for the week. As the market awaits pivotal releases this week, attention will be directed towards the Federal Reserve's meeting minutes, U.S.
inflation data for September, and earnings reports from major banks, which are anticipated to offer crucial economic insights. Additionally, ongoing developments in the Middle East situation will be closely monitored by investors and analysts alike..