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Week Ahead: A Strong Jobs Report Brings Optimism to the Earnings Season

 



Week Ahead, 7 Oct 2024
Actual Non-Farm Payroll (NFP) figure significantly exceeded consensus estimates, coming in at 60% higher. This stronger-than-expected labor market data increased the likelihood of a smaller, 25-basis-point interest rate cut by the Federal Reserve, compared to the more aggressive cuts anticipated by the market.

Bond ETFs like TLT declined by 1.23%, while the S&P 500 reversed its earlier losses to close up 0.90% for the day. Upcoming earnings reports could provide additional momentum for the US stock market.

While we remain cautious on the S&P 500, our technical target remains at 5,900-6,000, as long as the index stays above the support level of 5,650.

Meanwhile, the Chinese market is set to reopen on Tuesday. Social media channels indicate that many investors are eager to open brokerage accounts to participate in the potential rally.

The China A50 index remains on an upward trend, approaching its first target at 14,300. The Hang Seng Index (HSI) is currently at its first resistance level of 22,700. The stronger dollar following the NFP report could lead to a consolidation at the current levels.

Headlines for the week:
- US Corp Earnings (JPM, WFC)
- US Aug CPI, PPI, FOMC Minutes,  
- China markets reopen

Disclaimers apply

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