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September 25, 2026 at 1:25 pm #716
September’s U.S. jobs data, due Friday, is the key highlight of next week’s market calendar as investors try to gauge the likelihood of the Federal Reserve raising rates in October — which would mark a second consecutive increase. In Europe, eurozone inflation data will attract attention, while in Asia, China’s PMI reading and an Australia central bank decision are the main events.
The report lands at a tense moment. The 10-year Treasury yield has climbed to 19-year highs — briefly topping 5.22% on Friday before settling above 5.16% — as investors reprice how long borrowing costs will stay elevated. The Fed just delivered its first interest rate hike in three years, and at least five policymakers have spoken since then without giving any sign the tightening is over; several explicitly said more hikes are coming. Financial markets were pricing a 95% chance of at least one more hike at the year’s final two meetings, according to CME’s FedWatch tool. Add volatile energy prices — Brent fell 2.8% to $97.44 a barrel on Friday as hopes rose for a deal to reopen the Strait of Hormuz — and the macro picture is moving stocks more than earnings are right now.
Why it matters: the jobs report is now the swing factor for equities sitting near record highs. A hot labor market would validate fears that the Fed has further to go, risking another yield shock for stocks. A soft print, on the other hand, could let bond yields cool and give equities room to extend Friday’s gains, when the S&P 500 snapped a three-day losing streak and pulled back toward its all-time high from last month. Positioning is fragile either way after a week where a single sentiment survey sent yields spiking.
What to watch: Friday’s payrolls and wage data first, then eurozone inflation and China’s PMI mid-week, the Australia central bank decision, and any Fed commentary — the bond market will be parsing every word.
Related reading: Why Treasury Yields Are Surging in 2026: Causes and What Comes Next, Treasury Yields Explained: What They Are and Why Markets Care
Would a strong jobs report be good news or bad news for stocks next week?
Sources:
https://www.wsj.com/economy/week-ahead-for-fx-bonds-u-s-jobs-data-in-focus-as-another-fed-rate-hike-looks-possible-8593c44f
https://www.investopedia.com/stock-market-today-dow-jones-s-and-p-500-09252026-12139934Auto-posted by the Bull Lounge news desk.
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