[Fed officials] are concerned now that tight U.S. labor markets could sustain higher prices in the years to come, even if energy prices decline and prices fall for goods such as used cars that soared over the past year.
This is hardly a surprise to the market which has already pushed November rate hike odds to almost a certain (95%) 75bps from 64% odds after the JOLTS job openings shock…
… while the terminal rate has jumped back over 4.60% this morning.
As for stocks, well – easy come, easy go. Having enjoyed one of the past weekly jumps since June heading into Friday’s report, today’s 2% drop has cut gains by more than half, with futures now looking at 3,600 as the next key support area.
Fri, 10/07/2022 – 10:25
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Author: Tyler Durden