The US stock market indices open lower after the better-than-expected US jobs data

The better US jobs data, keeps the Fed on track toward a 75 basis point hike in early November and another 50 basis points in December. That would bring the Fed target rate to 4.5%. The question is what will the terminal rate be and when? The Fed dot plot saw a terminal rate at 4.6% in 2023 which implies just a single 25 basis point hike in 2023. The Fed is looking at the 4.50-4.75% rate as being restrictive. Is it restrictive enough?

PS There is a 92% chance of a 75 basis point hike at the November meeting

Next week, the US CPI and PPI data will be released.

A snapshot of the market after the initial minutes of trading shows:

• Dow down -341 points or -1.12% at 29595.33
• S&P down -51.59 points or -1.84% as 3692.94
• Nasdaq NASDAQ The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass Read this Term down -203.57 points or -1.84% at 10869.74
• Russell 2000 down -21.32 points or -1.22% at 1731.18

A look at other markets currently shows:

• 2 year yield 4.30%, +5.0 basis point
• 5 year yield 4.13%, +7.2 basis points
• 10 year yield 3.89%, +616 basis points (the high yield reached 4.01% in 2022 so far)
• 30 year yield 3.858%, +6.6 basis points

in other markets:

• spot gold is down around $10 at $1701.95 as it reacts to the the dollar higher/ rates higher trends
• spot silver is down $0.21 or -1.55% at $20.32
• crude oil is trading up $1.52 at $89.92
• The price bitcoin is trading below the $20,000 level at $19,588

A snapshot of the currency markets shows the CAD is the strongest while the EUR is the weakest. The US dollar is mixed after trading lower before the report.