To The Moon

If you’ve been watching the markets lately, you must heard of Rate Hike. So what is the next? On October 2, we are getting the latest U.S. Unemployment Rate.

Source from Trading Economics

What is the Fed Actually Looking At?

When the Federal Reserve sits down to decide on interest rates, they look at two main things :

1. Inflation: Are prices of everyday goods and services getting too expensive too fast?

2. Employment: Are people keeping their jobs, and is the labor market healthy?

Lately, the Fed’s challenge has been elevated inflation alongside a relatively resilient job market. Even with higher interest rates weighing on parts of the economy, employment has continued to grow while wage growth has stayed positive. Resilient household incomes and consumer spending can support demand, making it harder for inflation to return quickly to the Fed’s 2% target. But inflation is also being affected by other factors, including energy prices and tariffs.

The Fed’s main dilemma right now is how restrictive monetary policy needs to remain to bring inflation back to its 2% target, while avoiding unnecessarily weakening the labor market and economic growth.

How Does This Affect the Final Rate Decision in December?

We are heading into the final stretch of 2026, and the big question on everyone's mind is what happens at the December rate meeting .

• If the Unemployment Rate prints lower than expected (showing extreme strength): It tells the Fed that the economy is running way too hot. Wall Street will likely price out any hopes of easy money, and we might even look at more rate hikes instead of cuts to cool things down. That usually spells trouble for tech stocks and growth equities, while pushing the U.S. Dollar and bond yields higher.

• If it prints higher than expected (showing sudden cooling): It signals that high interest rates are finally biting into the job market. This gives the Fed the "green light" to step in, protect growth, and lean into rate cuts heading into December. Rate-sensitive assets and bonds would likely catch a nice relief rally.

What’s your game plan for next week?

Thank you TIGER BROKERS. Remember claim your vouchers before Expiry on 30 SEP 2026