Weak Jobs Data Keeps Yields Elevated, Nasdaq Futures Dip
Cover image from cnbc.com, which was analyzed for this article
Nasdaq hit records recently but futures dipped Monday as Treasury yields stayed elevated and investors digested weak jobs numbers.
PoliticalOS
Monday, October 5, 2026 — Business
Friday’s soft jobs report lowered the odds of an immediate Fed hike but left Treasury yields near multiyear highs, while separate political risks in Europe weighed on the euro; equity futures opened lower amid both pressures.
What outlets missed
Neither report quantified the size of Friday’s jobs miss or provided historical context for the current yield levels relative to past tightening cycles. Coverage of equity futures remained limited to a single sentence, leaving readers without detail on which sectors led the early decline. The euro article’s focus on France and Spain omitted any mention of how simultaneous U.S. yield pressure might amplify currency moves through interest-rate differentials.
Investors entered the week facing higher borrowing costs that have persisted near multiyear peaks, even after Friday’s weaker-than-expected jobs report eased some immediate fears of another Federal Reserve rate increase. The 10-year Treasury yield settled at 5.273 percent and the 30-year at 5.626 percent, both little changed from Friday’s levels after a prior sell-off. CME Group’s FedWatch Tool showed traders assigning an 82 percent probability that the central bank will leave rates unchanged at its next meeting.
Monday’s schedule includes the Institute for Supply Management’s services activity report, followed Wednesday by the release of the Federal Reserve’s September meeting minutes. Deutsche Bank analysts noted that the unsettled bond market makes the incoming data and Fed communications especially relevant, particularly for signals on how the committee views the neutral rate.
Separately, the euro fell 0.6 percent to its lowest level since May 2025 against the dollar amid political and fiscal concerns in Spain and France. RBC Wealth Management’s Rufaro Chiriseri highlighted that Spanish debt had held up better than French or Italian debt during last week’s sell-off, while Barclays and ING economists warned that France’s draft 2027 budget is unlikely to stabilize the debt ratio before next year’s presidential election.
Nasdaq futures pointed lower at the open, extending a pullback after the index reached record levels in recent sessions. The combination of still-elevated Treasury yields and fresh political uncertainty in Europe left traders with two distinct sources of caution heading into a data-heavy week.
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