Finance

Market interest rate expectations shifted significantly following recent Labor Department data showing U.S. nonfarm payrolls added a lower-than-expected 29,000 jobs in September. The probability of an impending interest rate hike at the upcoming October policy meeting plummeted to under 25%, down from 70% a week earlier. Analysts are now closely tracking the imminent release of the Federal Reserve meeting minutes to gauge the long-term trajectory of borrowing costs.

The 10-year U.S. Treasury yield advanced to 5.31%, holding near its highest level since the early 2000s. Persistent upward pressure on sovereign debt yields remains driven by structural factors including substantial government borrowing, heavy debt issuance, and elevated real yields rather than immediate monetary policy paths. This creates a divergence where growth equities advance on softer rate expectations while the fundamental risk-free benchmark remains exceptionally high.

International oil markets experienced sharp volatility, with front-month Brent crude declining roughly 2.1% to settle just above $100 per barrel, while West Texas Intermediate fell to $89.20. Energy markets saw a reprieve after G7 nations agreed to release approximately 100 million barrels of crude and diesel stockpiles, alongside an increase in exports from the Middle East. However, long-term geopolitical uncertainties regarding ongoing regional conflicts continue to present underlying risks for the global energy sector.