3 Things to Watch by Investing

Stocks experienced a significant decline on Tuesday as rising Treasury yields unsettled investors.

This week, the focus is on jobs data, with job openings at the end of August recorded at 9.6 million, surpassing expectations. Upcoming figures will include private payroll job additions, unemployment claims, and the government jobs report scheduled for Friday.

The Federal Reserve is closely monitoring the job market as it considers whether to raise interest rates again this year to combat inflation. Following its decision to maintain rates at last month’s meeting, the Fed has left the possibility of an increase open depending on economic conditions and data shifts. Although inflation is showing signs of easing, a strong consumer base and a tight labor market have made the Fed’s decision-making process more complex.

Officials have indicated that interest rates are likely to remain elevated longer than previously anticipated, reducing their projections for rate cuts next year by half from earlier estimates. This "higher-for-longer" approach has led to a surge in bond yields, with the 10-year Treasury reaching its highest level since 2007.

Here are three key factors that could influence the markets tomorrow:

1. Private Payrolls: The private payroll report for September will be released at 8:15 AM ET. Analysts predict an addition of 160,000 jobs, a decrease from the previous month.

2. Factory Orders: Data for August will be published at 10:00 AM ET, with expectations for a 0.3% increase from the prior month, in contrast to a 2.1% decline previously.

3. Services Activity: The September figures will be available at 9:45 AM ET, with analysts forecasting a reading of 50.2.