markets PM market analysis — 2026-09-04

Equities eased in Friday’s session as stronger-than-expected US employment data was read as a warning sign for inflation and interest-rate policy rather than as straightforward good news, according to the Associated Press. Treasury yields and the dollar rose in tandem, with investors already turning their attention toward the inflation evidence due in coming weeks, MarketScreener reported.

Energy markets added to the pressure. Elevated oil prices tied to tensions in the Middle East remained a persistent source of inflation risk and volatility for risk assets, MarketScreener said. Axios separately pointed to a broader shift in how stocks and government bonds are trading against one another, noting that the usual relationship between the two has grown less dependable as fiscal and inflation concerns reshape investor positioning.

Taken together, the session reflects a market still unsettled about the path of monetary policy. Strong labour data is being weighed against the risk that it delays rate cuts, and with yields climbing and cross-asset correlations shifting, equities remain exposed to further repricing if inflation data or Federal Reserve commentary reinforce a higher-for-longer rate outlook.