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Odds of October Fed rate hike drop sharply from 51% to 19% after weak jobs data.

Market News
07 Oct 2026
24/7 Wall Street
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Neutral
Odds of October Fed rate hike drop sharply from 51% to 19% after weak jobs data.

Market odds for a Federal Reserve rate hike in October fell from 51% to 19% within a week, driven by weaker-than-expected September jobs data showing slower payroll growth and a slight rise in unemployment. Fed officials indicated no urgent need for immediate action, shifting market expectations toward a delayed hike, likely in December. This shift benefits stocks in the short term but leaves long-term Treasury bonds vulnerable due to ongoing inflation and supply risks. Investors await upcoming inflation data for clearer guidance on future Fed moves.

Following the drop in October rate-hike odds, long-term Treasury bonds are showing signs of pressure. On Pluang, the iShares 20 Plus Year Treasury Bond ETF (TLT) trades at USD 76.91, down 0.48% as of Oct 07, 2026 22:42 WIB. The market cap stands at $47.36 billion, with 91% of order activity leaning toward selling, reflecting cautious sentiment among investors regarding bond prospects amid the changing Fed outlook.

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