Friday Afternoon Coffee - Markets Update - 5 Sep 2025 - Stocks Retreat from Record Highs as Weak Jobs Data Stokes Fed Cut Bets

The Trade Academy Team
Sep 5
2 min read

Markets Update: U.S. stocks briefly climbed to record highs Friday before slipping lower, as disappointing jobs data strengthened expectations that the Federal Reserve could deliver a steep interest rate cut later this month.

Global Markets Roundup: 5 September 2025

A weaker-than-expected August labor report fueled speculation that policymakers might cut rates by as much as 50 basis points, with some strategists now seeing a 75-basis-point reduction by year’s end as increasingly likely.

Payrolls Miss Deepens Rate Cut Speculation

Nonfarm payrolls rose just 22,000 in August, well short of forecasts for 75,000, following a revised 79,000 gain in July. The data reinforced concerns about slowing labor market momentum.

Equities Reverse from Highs

The S&P 500 touched a record 6,532.65 before retreating to close down 0.55%. The Dow Jones Industrial Average also set an intraday record before slipping 0.6%, while the Nasdaq Composite lost 0.3%.

Global equities were mixed: the MSCI World Index finished flat, Europe’s STOXX 600 dipped 0.2%, France’s CAC 40 fell 0.3%, and London’s FTSE 100 was unchanged.

Bonds Rally, Dollar Weakens

Treasuries surged as yields tumbled on rate cut bets. The two-year yield dropped 10.5 bps to 3.49%, while the 10-year yield slid 10 bps to 4.076%.

European yields also eased after hitting multi-year highs earlier this week. France’s 30-year yield retreated to 4.3873% from Wednesday’s 4.523% peak, while the UK’s 30-year yield slipped to 5.553%. Germany’s 10-year Bund yield held at 2.7051% following weaker-than-expected industrial orders.

The U.S. dollar index DXY fell 0.6% to 97.674, with the euro EURUSD rising 0.6% to $1.17625. The dollar also dropped 0.9% against the yen USDJPY , trading at 147.05, after Washington signed a deal to lower auto tariffs on Japan.

Gold Surges, Oil Declines

Gold hit fresh highs as safe-haven demand surged. Spot prices climbed 1.3% to $3,592.13, after touching a record $3,597.66 earlier. The metal is on pace for its strongest weekly advance in nearly four months.

Oil extended its losing streak. Brent crude fell 2.3% to $65.44 a barrel, while WTI crude dropped 2.6% to $61.83. The European Union signaled support for President Trump’s proposal to halt U.S. purchases of Russian oil.

Commodities Mixed

Corn (Dec CZ25): +¾ cent to $4.20½/bushel
Soybeans (Nov SX25): -3 cents to $10.30/bushel
Wheat (Dec WZ25): +1¾ cents to $5.21¼/bushel

In softs, Arabica coffee eased toward $3.85/lb as traders awaited clarity on whether Trump’s proposed 50% tariff on imports from Brazil—the top supplier—will be enforced.

Looking forward, refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team