- Stocks fell and Treasury yields rose to multi-year highs after job data bolstered the case for the Federal Reserve to keep interest rates on hold.
- The S&P 500 fell 1.4% to a four-month low, while the Nasdaq 100 index fell 1.8% following an overly optimistic reading on August job openings. The CBOE Volatility Index, or VIX, rose above 20 intraday - a key level signalling mercurial spirits are in the air - the highest such reading since May. The ICE BofA MOVE Index, which measures expected bond volatility, began the week at its highest level since August 21.
- The number of available positions increased to 9.61 million from less than 9 million in July, according to the Bureau of Labor Statistics' Job Openings and Labor Turnover Survey, or JOLTS. The report prompted swaps traders to raise their bets on the Federal Reserve raising interest rates in December to better than a 50-50 chance.
- Yields on US 10- and 30-year bonds have reached their highest level since 2007, with the longer-term bond trading above 4.9%. Rates on longer-term bonds are expected to reach 5%, according to Wall Street. The rise in yields was also causing concern in the credit market, with at least two issuers cancelling sales on Tuesday.
