Wall Street Rises as Investors Await Key Jobs Report

Wall Street Rises as Investors Await Key Jobs Report/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks edged higher Monday, recovering some losses from last week as investors await a crucial jobs report that could guide Federal Reserve interest rate cuts. The S&P 500, Dow, and Nasdaq all gained early, nearing record highs. Market risks include economic data delays from a potential government shutdown.

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Wall Street Monday Quick Looks

• S&P 500 up 0.4%, Dow up 29 points, Nasdaq up 0.6%
• All three indexes remain near all-time highs
• Focus shifts to Friday’s U.S. jobs report for Fed signals
• Markets watch government shutdown deadline for potential disruptions
• Oil drops 2% on OPEC+ production concerns
• Gold surges past $3,850 per ounce, setting fresh records
• 10-year Treasury yield slips to 4.16% from 4.20%
• Overseas markets mixed: London up, Hong Kong higher, Tokyo lower

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Wall Street Rises as Investors Await Key Jobs Report

Deep Look

Wall Street started the week on firmer footing, with major U.S. stock indexes ticking higher Monday after posting their first weekly loss in nearly a month. Investors are eyeing a packed economic calendar — led by the release of the September jobs report on Friday — while also bracing for the possibility of a federal government shutdown.

The S&P 500 rose 0.4% in early trading, climbing back toward its record high set just last week. The Dow Jones Industrial Average gained 29 points, or 0.1%, while the Nasdaq composite advanced 0.6%, buoyed by strength in technology shares. Despite recent volatility, all three benchmarks remain near their all-time peaks.

Spotlight on the Jobs Report

The centerpiece of the week is the Labor Department’s monthly employment report, due Friday. Markets are looking for job growth that threads a delicate needle — strong enough to avoid recession fears but not so strong that it discourages the Federal Reserve from continuing to cut interest rates.

The Fed delivered its first rate cut of 2025 earlier this month and has signaled more reductions could follow into 2026. That pivot toward looser policy has fueled a rally in equities since April, with investors pricing in lower borrowing costs, stronger economic activity, and higher corporate valuations.

“If job growth comes in too hot, it risks delaying or reducing the Fed’s rate cuts,” said one strategist. “If it’s too weak, then recession fears could rise. Investors are hoping for a ‘Goldilocks’ outcome.”

The Shutdown Wild Card

Complicating the picture is Washington, where lawmakers face a midweek deadline to avoid a federal government shutdown. While recent shutdowns have had only limited effects on markets, this one carries added risks.

The Biden administration has warned that this shutdown could involve not just temporary furloughs but potential permanent layoffs of federal workers. More immediately, a shutdown could delay key government data releases, including employment and inflation reports — depriving investors and policymakers of vital information at a time when clarity is essential.

“We believe that a shutdown will have only a small and transitory economic impact, but it may spur some financial market volatility,” said Jennifer Timmerman, investment strategy analyst at Wells Fargo Investment Institute. She added that if stocks do fall, long-term investors may see it as a buying opportunity.

Overseas Markets Mixed

Global markets offered little clear direction. In Europe, London’s FTSE 100 climbed 0.3%, led by pharmaceutical giant GSK, which gained after announcing that CEO Emma Walmsley will step down at the end of the year. Chief commercial officer Luke Miels will succeed her.

In Asia, Hong Kong’s Hang Seng Index surged 1.9%, recovering recent losses, while Tokyo’s Nikkei 225 dropped 0.7%, reflecting profit-taking and concerns about global demand.

Oil Slides, Gold Surges

Commodity markets added to the volatility narrative. Crude oil prices dropped more than 2%, pressured by reports that OPEC+ may raise production quotas in October. An increase in supply would weigh on prices already strained by questions over global demand growth.

Meanwhile, gold extended its record-breaking rally, climbing above $3,850 per ounce. Investors are piling into the precious metal as a hedge against inflation, fiscal deficits, and geopolitical uncertainty. The prospect of more Fed rate cuts has only added to gold’s allure.

Bonds Ease Slightly

In fixed-income markets, U.S. government debt yields edged lower. The 10-year Treasury yield slipped to 4.16%, down from 4.20% late Friday. Yields had spiked earlier this month on concerns about stubborn inflation but have since moderated as traders anticipate easier monetary policy.

What’s Next?

Markets will continue to trade on economic data, corporate earnings, and the political standoff in Washington. For now, optimism around Fed rate cuts has kept equities buoyant, even as risks from overvaluation, shutdown disruptions, and global growth uncertainty remain.

If the jobs report confirms that the U.S. economy is cooling without collapsing, Wall Street could get the reassurance it needs to keep pushing higher. But until then, volatility is likely to remain the dominant theme.

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