Business · Malaysia Bureau
Weak US jobs data lifts stocks, pressures bond yields lower
US employment growth faltered in September with just 29,000 jobs added to the economy, prompting a modest shift in market sentiment. The softer-than-expected labour data sent stock markets higher while pushing government bond yields down.
LSN Malaysia ·
Employment growth in the United States slowed considerably in September, with employers adding only 29,000 jobs during the month, according to labour data released this week. The figure fell well short of typical monthly gains and signalled a cooling in the world's largest economy.
The unemployment rate edged upward to 4.2 per cent, marking a slight deterioration in the labour market even as overall economic activity continues. The weaker employment picture has raised questions about the trajectory of hiring and consumer spending in the months ahead.
Markets responded positively to the disappointing jobs figures, interpreting them as a sign that the US Federal Reserve may pause or moderate its monetary tightening cycle. Equity indices moved higher on the data, while yields on US government bonds fell as investors reassessed expectations for interest rates.
The mixed signals from the labour market come as policymakers weigh the competing pressures of inflation and economic growth. Softer employment growth could provide breathing room for inflation to cool further, potentially altering the Fed's policy path in the coming months.