From The Rio Times · Diego Fernández · · 2m
Nasdaq Falls 1.3% as Oil Stays Above US$100
Oil above $100 and Fed rate hike push Nasdaq down 1.3%.
In brief
Oil above $100 and Fed rate hike push Nasdaq down 1.3%. Nasdaq dropped 1.3% to 27,193 as oil stayed above $100, with US jobs cooling and Fed tightening. Originally reported by The Rio Times.
Oil Stays Above US$100
Brent crude held above US$100 a barrel as the US-Iran standoff over the Strait of Hormuz kept supply risks elevated.
“Brent crude held above US$100 a barrel as the US-Iran standoff over the Strait of Hormuz kept supply risks elevated.”
US Jobs Cool While Fed Tightens
US employers added 29,000 jobs in September versus 90,000 expected, while unemployment rose to 4.2%. The Federal Reserve raised its rate to 3.75%, 4.00% on 16 September, its first increase since 2023.
“US employers added 29,000 jobs in September versus 90,000 expected, while unemployment rose to 4.2%. The Federal Reserve raised its rate to 3.75%, 4.00% on 16 September, its first increase since 2023.”
Dollar Strength Tightens Latin America
A stronger dollar and elevated US yields raise funding pressure for emerging markets. Brazil’s real faces renewed sensitivity to the Fed path, oil-driven inflation and the room available for the Banco Central do Brasil to ease Selic.
“A stronger dollar and elevated US yields raise funding pressure for emerging markets. Brazil’s real faces renewed sensitivity to the Fed path, oil-driven inflation and the room available for the Banco Central do Brasil to ease Selic.”
Nasdaq Slides 1.25%
The Nasdaq Composite fell 1.25% to 27,193, as investors rotated away from stretched technology names.
“The Nasdaq Composite fell 1.25% to 27,193, as investors rotated away from stretched technology names.”
S&P 500 Drops 0.47%
The S&P 500 slipped 0.47% to 7,765, while the Dow Jones Industrial Average defied the mood with a 0.10% gain to 51,232.
“The S&P 500 slipped 0.47% to 7,765, while the Dow Jones Industrial Average defied the mood with a 0.10% gain to 51,232.”
Gold Rises 0.88%
Gold climbed 0.88% to $4,145 an ounce, a sign that safety remains in demand even as the US 10-year Treasury yield consolidated at 5.235%.
“Gold climbed 0.88% to $4,145 an ounce, a sign that safety remains in demand even as the US 10-year Treasury yield consolidated at 5.235%.”
VIX Rises 2.19%
The VIX edged up 2.19% to 15.41, reflecting nervousness rather than panic.
“The VIX edged up 2.19% to 15.41, reflecting nervousness rather than panic.”
Brazil IPCA Inflation Rate
Brazil’s IPCA inflation is expected to accelerate to 4.50% year-on-year from 4.22%, with core inflation at 3.75%.
“Brazil’s IPCA inflation is expected to accelerate to 4.50% year-on-year from 4.22%, with core inflation at 3.75%.”
US 10-Year Yield at 5.235%
The US 10-year Treasury yield consolidated at 5.235%, raising borrowing costs across the economy.
“The US 10-year Treasury yield consolidated at 5.235%, raising borrowing costs across the economy.”
Dollar Index Pauses
The dollar index eased 0.20% to 102.034 on Thursday, but the broader trend still favours the greenback.
“The dollar index eased 0.20% to 102.034 on Thursday, but the broader trend still favours the greenback.”
Brazil’s Inflation Pressure
Brazil’s IPCA monthly is expected to rebound sharply to 0.73% from -0.32%, testing the central bank’s room to cut.
“Brazil’s IPCA monthly is expected to rebound sharply to 0.73% from -0.32%, testing the central bank’s room to cut.”
What to Watch Today
Brazil’s September IPCA at 09:00 BRT (12:00 UTC), University of Michigan consumer sentiment at 14:00 UTC, and Baker Hughes oil rig count at 17:00 UTC.
“Brazil’s September IPCA at 09:00 BRT (12:00 UTC), University of Michigan consumer sentiment at 14:00 UTC, and Baker Hughes oil rig count at 17:00 UTC.”
In short
Nasdaq dropped 1.3% to 27,193 as oil stayed above $100, with US jobs cooling and Fed tightening.
