U.S. stock markets closed a little lower on Friday, 8^th October 2021, after the jobs report showed growth for September was the slowest this year. 

Non-farm payrolls increased by 194,000 (estimate 500,000) after an upward revision of the 366,000 gain in August.  

The unemployment rate fell to 4.8% and average hourly earnings were higher at 0.6%, the strongest since April. 

The labor force participation rate — a measure of the share of Americans who are employed or looking for work — fell by 0.1 percentage point to 61.6% 

The S&P started the week on a weak note, but buyers on dips found the courage over the next 3 days to push the market higher. 

The positive news that may have caused this rebound was the agreement to extend the debt limit into December, the stronger than expected ADP employment data, and the selloff in gas prices after Putin offered to stabilize global energy markets. 

Here are the closing levels on Friday: – 

	Last	Change	%Change
Dow Jones	34,746.25	-8.69	-0.03%
S&P 500	4391.34	-8.42	-0.19%
Nasdaq Comp	14579.54	-74.48	-0.51%
US 10Y	1.612%
VIX	18.77	-0.77	-3.9%

The weekend will allow the markets to digest the volatility we have experienced over the last 5 days, taking into account all the news that cause such volatility. 

The debt ceiling will still be a problem in December, since the shortage of global energy remains a concern with winter just around the corner. 

 
The jobs report was not inspiring, as there were some weak areas in the report that may suggest problems down the line. 

The Federal Reserve could delay its tapering on the back of this weak report, but it is unlikely as they would not want to back track after signaling that they will start soon. Changing their minds would not give confidence to the markets.

While we have held off on making new lows, it may be premature to think that the trend has changed. With the 10-year yield at 1.61%, the big tech stocks may find it hard to keep going higher. Against this background, it is best to be prepared for more volatile days ahead. 

Source: CBOE, Reuters, Bloomberg  

This commentary is written by James Gomes 
James has been in the finance industry for over 30 years and most recently worked for a large US bank for more than 20 years. 

Disclaimer 
While every effort has been made to ensure the accuracy of the information in this document, the DOO Group does not warrant or guarantee the accuracy, completeness or reliability of this information. The DOO Group does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. A decision to invest in financial instruments, any investment related products or any other products, securities or investments should not be made in reliance on any of the statements in this document. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision. 

Without limiting any of the foregoing, in no event will the DOO Group or any of its affiliates be liable for any decision made or action taken in reliance on the information in this document and, in any event the DOO Group and its affiliates shall not be liable for any consequential, special, punitive, incidental, indirect or similar damages arising from, related to or connected with this document, even if notified of the possibility of such damages. 

This document contains forward-looking statements. The forward-looking statements included in this document are based on current expectations that involve a number of risks and uncertainties. These forward-looking statements are based on the analysis of DOO Group of the statistics available to it. Assumptions relating to the forward-looking statement involve judgments with respect to, among other things, future economic, competitive and market conditions all of which are difficult or impossible to predict accurately. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the DOO Group that the forward-looking statements will be achieved. The DOO Group cautions you not to place undue reliance on its forward-looking statements and we assume no responsibility for updating any forward-looking statements. Expressions of opinion are those of the authors and are subject to change without notice. 

This document is strictly confidential to the recipient. It is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly to other person or published, in whole or in part. For any purpose, neither this document nor any copy of it may be taken or transmitted into Singapore, Hong Kong, Malaysia, United Kingdom and the United States or distributed directly or indirectly in Singapore, Hong Kong, Malaysia, United Kingdom and the United States. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document should inform themselves about, and observe any such restrictions. By accepting this report, you agree to be bound by the foregoing instructions.