• Wall Street closed in the red on September 6, as the DJIA, S&P 500 and Nasdaq closed down by -1.01%, -1.73%, -2.55%, respectively.
• Stocks tumbled on Friday, with the S&P 500 falling to a 3,5 week low, the Dow Jones sliding to a 3-week low, and the Nasdaq dropping to a 4-week low. The market was dragged down by weakness in chip stocks, led by a -10% plunge in Broadcom and a -4% drop in Nvidia, alongside a broader slump in megacap tech stocks.
• The 10-yr UST yield fell by -1.0 bps to 3.72%, while the 2-yr yield dipped -9.0 bps to 3.66%. T-note prices rallied Friday as August nonfarm payrolls came in below expectations and July payrolls were revised lower. Lower inflation expectations also supported T-notes, with the 10-year breakeven rate slid to a 1-month low of 2.03%.
• US August nonfarm payrolls increased by +142,000, below expectations of +165,000. Additionally, July nonfarm payrolls were revised down to +89,000 from the initially reported +114,000. However, the unemployment rate ticked down to 4.2%, as expected.
• In Europe, Germany's trade surplus narrowed to EUR16.8 billion in July 2024 from EUR 20.4 billion in June. Exports increased by +1.7% MoM, recovering from a 3.4% drop in June, while imports grew by +5.4% MoM following a downwardly revised 0.2% gain in June.
• In Asia, China's foreign exchange reserves rose by USD31.8 billion to USD3.288 trillion in August 2024, up from USD3.256 trillion in July, slightly below the forecast of USD3.29 trillion.
• Global bond yields moved lower on Friday: the 10-yr German bund yield fell by -3.6 bps to 2.17%, the 10-yr UK gilt yield declined by -2.9 bps to 3.88%, and the 10-yr Japanese JGB closed down by -2.6 bps to 0.85%.
