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Friday, October 4

Some of the largest macro moves in the market today include: US 2Y Treasury Bond -0.3%. USD/CNH +0.5%. US 10Y Treasury Bond -0.6%. Some of the largest moves among US mega-cap stocks include: Amazon.com Inc (AMZN) +2.0%. JPMorgan Chase & Co (JPM) +0.7%. 

The U.S. labor market data for September 2024 has shown stronger-than-expected job growth, with the economy adding 254,000 jobs compared to forecasts of 140,000 and an upwardly revised figure from August at 159,000. Additionally, average hourly earnings increased by more than anticipated at a rate of 0.4%, surpassing expectations of a rise by only 0.3%. The unemployment rate fell unexpectedly to its lowest in three months at 4.1%.

In Japan's financial markets today (October), there is notable movement as the Nikkei Index rose significantly following comments from Japanese officials about economic measures aimed at overcoming deflation under new leadership.

Meanwhile in Europe and China-related news: European FX discussions are ongoing regarding EU-China negotiations over electric vehicle tariffs which could impact trade relations between these regions; this comes amidst mixed trading sessions across major global indices including declines seen within Chinese equities due largely because their stock exchanges remain closed during national holidays until next week when they reopen again after Golden Week celebrations conclude on October eighth respectively according recent reports available online via various sources tracking developments closely around world events affecting macroeconomic conditions globally right now too!

Nasdaq 100 Index (US) (US100/USD) [+1.1%]
The Nasdaq 100 Index (US100/USD) has moved up by 1.1% during market hours on Friday. The US Nonfarm Payrolls report released today indicated a significant increase of 254,000 jobs in September, alongside an unexpected drop in the unemployment rate to 4.1%. This job growth surpassed market expectations and suggests strong labor market conditions. Additionally, average hourly earnings rose by 0.4% month-over-month and 4.0% year-over-year, exceeding forecasts. Escalating tensions between Israel and Iran have contributed to rising oil prices, impacting overall market sentiment. The Dow Jones Index (US30/USD) has also increased by 0.49%, reflecting broader market trends that may influence the Nasdaq 100 Index.

US 10Y Treasury Bond (USB10Y/USD) [-0.7%]
The US 10Y Treasury Bond (USB10Y/USD) has declined by 0.7% since Thursday. The U.S. Nonfarm Payrolls report released today revealed a significant increase of 254,000 jobs in September, alongside an unexpected drop in the unemployment rate to 4.1%. Average hourly earnings also rose by 0.4%, exceeding forecasts. These labor market indicators may influence Federal Reserve policy decisions regarding interest rates. Additionally, the US 2Y Treasury Bond (USB02Y/USD) has declined by 0.29%, reflecting broader market sentiment that could be impacting the USB10Y/USD movement. Rising geopolitical tensions affecting oil prices further complicate the market landscape.

SMMT | +10.2% | +1.5B
Summit Therapeutics Inc | Biotechnology
Summit Therapeutics Inc has seen a notable price increase following significant announcements regarding its Phase III HARMONi trial. The company has completed enrollment in this multi-regional study, which assesses the efficacy of ivonescimab in combination with platinum-doublet chemotherapy for patients with EGFR-mutated non-small cell lung cancer who have progressed after prior treatment. Additionally, the U.S. Food and Drug Administration has granted Fast Track designation for ivonescimab in this context. These developments were reported on October 3rd and 4th, 2024. Topline data from the trial is expected in mid-2025. Conversations on social media have also highlighted the completion of enrollment and the FDA's designation, further contributing to the positive market response.

ALB | +5.3% | +622.7M
Albemarle Corp | Specialty Chemicals
Albemarle Corp's stock has surged following a report from The Australian, which revealed that Rio Tinto is contemplating mergers and acquisitions in the lithium sector, with Albemarle identified as a potential acquisition target. This news coincided with a premarket rise of Albemarle's shares by 3.3%, alongside a similar increase in shares of another lithium company, ALTM. Social media discussions have also highlighted Rio Tinto's interest in significant acquisitions within the lithium market, specifically mentioning Albemarle and Arcadium Lithium as key targets. Both companies operate in crucial lithium-producing regions where Rio Tinto is active.

RIVN |-7.4%|-737.1M
Rivian Automotive Inc | Automobile Manufacturers
Rivian Automotive Inc has revised its annual production forecast downward, now anticipating the production of 47,000 to 49,000 vehicles, a decrease from the previous estimate of 57,000. This change is attributed to a parts shortage that has increasingly impacted production since the third quarter. In Q3, Rivian produced 13,157 vehicles and delivered 10,018, both figures falling short of analyst expectations. The company is projecting low single-digit growth in deliveries for 2024, estimating between 50,500 and 52,000 vehicles. Following the announcement of the lowered production forecast, Rivian shares dropped significantly in premarket trading, with reports indicating a decline of up to 8%. The production forecast cut missed average analyst estimates, reflecting broader supply chain issues affecting the electric vehicle market.

SAVE | -31.4% | -53.1M
Spirit Airlines Inc | Passenger Airlines
Spirit Airlines Inc is reportedly in discussions with bondholders regarding a potential bankruptcy filing, following the collapse of its merger with JetBlue Airways. The airline is facing significant financial distress, burdened by a $3.3 billion debt load, including over $1.1 billion in secured bonds maturing within the year. Operational challenges are exacerbated by declining revenue and ongoing losses, prompting plans to reduce capacity by nearly 20% in the fourth quarter. While the timing of any bankruptcy filing is not imminent, Spirit must address its financial obligations by October 21. Following these developments, Spirit shares dropped significantly in after-hours trading, reflecting heightened concerns about the airline's viability. Social media discussions have echoed these worries, highlighting the airline's precarious situation and frustrations stemming from the failed merger plans abandoned in March.

BABA | +3.3%| +74.3B
Alibaba Group Holding Ltd | Broadline Retail
Alibaba Group Holding Ltd (BABA) has seen a notable increase of 3.2% in pre-market trading. Recent social media discussions highlight that mainland ownership via the Stock Connect reached a new high of 514.6 million shares, accounting for 2.67% of the company, as of Monday, the only trading day this week for China markets. This translates to approximately HK$50 billion (US$6.5 billion) invested in Alibaba. Additionally, there is anticipation surrounding Chinese stocks, including BABA, following a breakout in the Hang Seng Index. In a broader market context, the iShares China Large-Cap ETF (FXI) has also increased, reflecting positive sentiment that may influence BABA's performance. Notably, Alibaba is outperforming its sector peers during this period.

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