Weak US Jobs Data Fuels Recession Fears and Pressures REITs
Key Facts
The September payrolls report showed job growth of only 29k, falling well short of expectations according to Seeking Alpha. U.S. wage growth slowed to its weakest pace since 2021, while Core PCE inflation surprised to the downside, aided by benchmark and methodology revisions.
These economic indicators eased near-term Federal Reserve tightening fears but failed to prevent pressure on the long end of the yield curve and the REIT sector. While cooling inflation and weak hiring data suggest a shift in the labor market, the resulting recession fears have created a mixed environment for equity markets.
Latest Updates · 3
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Update: U.S. stock futures rose following the weak payrolls data on October 5, 2026. An artificial intelligence stock jumped 11.60% during the session, indicating a selective market response despite the broader recessionary concerns.
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Update: The impact of weak US payroll data spread to global markets, driving Asian stocks higher in trading on October 5, 2026. The rally was fueled by diminishing expectations for further interest rate hikes as investors reacted to signs of a cooling US labor market.
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Update: U.S. stock futures rose following the report as the weak hiring data tempered investor expectations for further interest rate hikes. This shift in monetary policy outlook provided an immediate lift to futures markets despite the underlying concerns regarding economic recession.