Key themes:
- Markets opened on a broadly positive note, buoyed by NVIDIA’s consensus-beating earnings. However, the rally proved short-lived as concerns about stretched technology stock valuations resurfaced.
- The release of US payrolls data for September surprised to the upside with 119k new jobs, prompting investors to consider the likely next FOMC policy move very carefully.
- The S&P 500 gained around 2% in early trading, but trended downwards to finish the day 0.9% lower. US Treasuries rallied despite the stronger payrolls figure, with the market apparently focusing more on the uptick in the unemployment rate.
- Australian government bond yields also climbed by 5bp at the 10Y point, as RBA Assistant Governor Sarah Hunter reiterated the RBA’s view that the Australian labour market remains a little tight.