Market Re-prices October Rate Hike Following PMI Data

Market expectations for a second Federal Reserve rate hike in 2026 surged after September PMI data exceeded forecasts. Polymarket odds for an October hike rose from 53.5% to 69.5% following the report and comments from Governor Barr. While the S&P 500 saw gains driven by large-cap tech stocks, long-term bonds and gold declined. Bitcoin experienced a 3.51% weekly gain, supported by $999 million in net inflows into spot BTC ETFs on Monday, despite subsequent market volatility.