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Stocks Steady as Investors Brace for Inflation Reports
9 Sep
Summary
- Broad indexes near record highs, held by strong banks and tech stocks
- Treasury yields drop sharply, signaling dovish Fed expectations
- Downward revision to job growth estimates points to low-momentum labor market
On September 9, 2025, the stock market is in a holding pattern as investors await crucial inflation reports over the next two days. The broad indexes have been steady, trading just below record highs, with the market's performance held up by strong gains in big banks and a few tech giants.
Despite the overall market stability, there is significant dispersion among individual stocks, with more declining than advancing. The drop in Treasury yields, from 4.3% to 4.04% over the past week, suggests that the bond market is fixated on soft labor data and dovish signals from the Federal Reserve. This is in contrast to the stock market, which has maintained a positive trajectory, buoyed by an improving earnings outlook and expectations of a reflationary growth upturn.
Notably, the government has revised downward its estimates of job growth from April 2024 through March 2025, indicating a low-momentum labor market. This revision is more significant than typical benchmark adjustments, aligning with other signs of a sluggish employment situation.
In the tech sector, Apple's latest product launch has failed to impress investors, with the company's shares trading down around 1.5% on the day. However, the stock has seen a strong 18% rally since the beginning of August, leaving room for some consolidation.
