Stock Market Reverses Gains Amid Rising Unemployment; Dalio Warns of Bubble
Major ETFs SPY and QQQ erased early gains to close sharply lower after a delayed jobs report showed rising unemployment. The September nonfarm payrolls added 119,000 jobs, beating estimates, but August figures were revised downward to a loss of 4,000 positions. Unemployment climbed to 4.4%, the highest level since October 2021.
Nvidia's strong earnings briefly lifted markets, but warnings from Fed Governor Lisa Cook and Bridgewater's RAY Dalio overshadowed optimism. Dalio's CNBC appearance included a bubble alert, though specifics were cut off in the source material. Heather Long of Navy Federal Credit Union noted the economy is merely 'treading water' with an average of 44,000 jobs added monthly over the past four months.