A strong August payrolls report added 162,000 jobs, exceeding expectations and revising July’s loss to a modest gain. Despite robust data, bond yields fell, reflecting concerns over fiscal and monetary policy, while the IMF warns of a "great repression." Information industry jobs fell again, and the Dutch central bank moved 78 tonnes of gold from New York to London, signaling global trust issues. Equities, however, remain buoyant: the MSCI World index rose 3% in the past month, with investors favoring emerging markets and cyclicals, while hedge funds have reduced shorting to a three‑year low.

Corporate leverage is low and earnings strong, but analysts now expect the Fed to begin raising rates, with Société Générale forecasting up to three quarter‑point hikes starting this month through March 2027. Historically, stocks often rise before rate hikes, though a brief digestion period follows before new highs.