Markets Rally as Traders Bank on an Imminent U.S. Rate Cut

Labor Market Weakness Sparks Optimism
A disappointing August jobs report—just 22,000 new jobs added compared to 75,000 expected, with revisions showing a contraction in June—sent shockwaves through the market. This underscores a cooling labor market and significantly raises the odds of a Federal Reserve rate cut.
The Times
Equities at Record Highs, Bond Yields Fall
In response, benchmarks like the S&P 500, Nasdaq, and Dow Jones surged to record levels. Meanwhile, U.S. Treasury yields dropped sharply as investors priced in imminent monetary easing.
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Global Markets Mirror U.S. Sentiment
Equities across Europe, Asia, and the Gulf region climbed, buoyed by the same rate-cut expectations. Oil prices slipped and some key indices—like the MSCI World and STOXX 600—rose, signaling broad-based investor confidence.
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Gold Hits New Heights on Safe-Haven Demand
Gold climbed above $3,500 per ounce, setting a new record. Investors are treating it as a hedge amid uncertainty about economic policies and geopolitical tensions.
Reuters