No October jobs report today: How the lack of data is hampering Fed policy and markets

Federal Reserve Insights - The Federal Reserve is currently experiencing a divided stance among its officials regarding interest rate decisions, with some advocating for rate cuts while others remain cautious [2][11][12] - Recent data indicates a labor market that is gradually weakening, with inflation running above the 2% target, estimated at around 3% [4][10] Investor Concerns - Investors are facing a "wall of worry" due to three main factors: concerns over AI spending following recent Meta results, uncertainty about the pace of rate cuts, and the worst employment market data in 22 years [6][17] - There is a need for catalysts such as government reopening for economic data clarity and upcoming earnings reports from tech companies like Nvidia to potentially revive market sentiment [7][10] Economic Outlook - The economy is showing signs of slowing, particularly in the employment sector, which may lead to three additional rate cuts over the next 12 months [9][11][16] - Consumer companies are reporting weak earnings, particularly among lower-end consumers, while the higher-end segment is performing better, indicating a narrow market performance [17] Earnings Performance - Third-quarter earnings are reported to be up by 10% year-over-year, providing a positive note amidst concerns about the overall economic outlook [18]