• US stocks fell Monday as investors assessed rate of interest moves after Friday’s strong jobs report.

• The ten-year Treasury yield rose above 4% for the first time since late July.

• Investors will focus on earnings season and the upcoming September CPI report this week.

US stocks dipped to start the week as investors assessed the outlook for rates of interest following the strong September jobs report.

The market is taking a breather after ending last week with the fourth consecutive weekly gain and a fresh record for the Dow Jones Industrial Average. Investors cheered the stronger-than-expected nonfarm payroll report, which showed employers added 254,000 jobs last month, crushing estimates of about 150,000.

The ten-year US Treasury yield jumped above 4% on Monday for the first time since late July, and investors for the time being are questioning just how repeatedly the Federal Reserve might cut rates of interest this 12 months since the economy stays on solid footing.

“After Friday’s strong employment report, the consensus might pivot to ‘no rush to ease further’ throughout the autumn. We won’t rule out ‘higher for longer’ making a comeback this winter. We’re throughout the none-and-done camp for the rest of this 12 months,” Yardeni Research said in a note on Monday.

The futures market is pricing in two more 25 basis point rate cuts from the Fed by the highest of the 12 months.

Investors will turn their attention to earnings season, which kicks off this week with results from PepsiCo on Tuesday, followed by the first of the major banks on Friday.

Investors will seek for clues regarding the financial strength of consumers, firms’ ability to monetize AI, and the final impact of lower rates of interest.

The September CPI report could be on the economic calendar this week, set to be released on Thursday. Economists expect the CPI index to rise 2.3% year-over-year in September, down from 2.5% in August.

Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:

Here’s what else is happening:

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil was up 1.53% to $75.52 a barrel. Brent crude, the international benchmark, was higher by 1.35% to $79.10 a barrel.

• Gold was down 0.07% to $2,665.90 an oz..

• The ten-year Treasury yield was higher by 6 basis points at 4.027%.

• Bitcoin was higher by 0.45% to $63,102.

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