Soft Jobs Data Lifts Stocks and Gold, Pressures Dollar

U.S. stock futures ticked higher heading into the October 4 session after jobs data came in softer than expected, reducing trader expectations for further Federal Reserve interest rate increases. Gold prices edged higher, recovering part of a prior weekly slide, while the dollar wobbled against other currencies. The moves reflect a reassessment of how much more tightening the Fed needs to do to control inflation. Lower rate-hike odds tend to support equities and gold while weighing on the dollar, and Tuesday's price action across all three markets moved in that direction together. Separately, a former Bank of Japan policymaker argued for an end to Japan's low-rate era paired with increased government spending, a reflationist stance that could add a cross-currents factor for currency markets if Japanese policy shifts while the Fed eases its hiking pace.