The rally on Wall Street fizzled on Thursday as investors braced for the September NFP report. The spiking yield on the ten-year treasury has markets nervous the FOMC will hike rates multiple times before it is through, and the NFP report could provide a cause. The ADP report Wednesday was weaker than expected but does not often track in alignment with the NFP: the Challenger, Gray & Christmas report on layoffs and planned hiring shows intent to hire nearly 600,000 seasonal workers this holiday, putting 2023 on track to be the 3rd strongest hiring year on record.

The next test for the market is next week. The PPI and CPI data are due out mid-week and may provide another reason for investors to worry. The latest indications suggest the CPI will accelerate compared to the previous month on a MoM and YoY basis and will lend further evidence that inflation is not tamed.

Also on tap for next week is the start of the Q3 earnings reporting season. The season kicks into high gear on Friday with reports from the major banks.