Strong Jobs Data Fuel Fed Rate Hike Bets, Yet Wall Street Stays Calm: Three Pillars of Market Resilience
Strong US August jobs data boosted bets on Fed rate hikes, triggering a bond sell-off and dollar strength. Yet, unlike typical patterns, broad risk aversion failed to materialize. Corporate bonds, credit spreads, and equities showed resilience, underpinned by economic growth, earnings, and AI investment. The focus now shifts to inflation data and the pace of yield increases.
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