Dow Jones Stalls Ahead of Earnings Wave as Rate Cut Odds Diminish
The Dow Jones Industrial Average (DJIA) showed muted movement as investors braced for a flurry of earnings reports from key constituents this week. Home Depot (4.73% index weight) kicks off the earnings season on Tuesday, followed by Nvidia (2.44%) and Walmart (1.35%) later in the week.
All eyes turn to Thursday's delayed September jobs report, which will provide critical insights into labor market health ahead of the Fed's December rate decision. Private sector data during the government shutdown suggested persistent weakness, with October layoffs hitting a 22-year high according to Challenger, Gray & Christmas.
Market expectations for monetary easing have sharply declined, with odds of a 25 basis point cut plunging over the past month. Fed Vice Chair Philip Jefferson recently emphasized a cautious approach, reflecting policymakers' dual concerns about labor market stability and inflationary pressures.
