S&P 500 rises slightly amid unclear market conditions and anticipation of ISM services data
by VT Markets
/
Sep 4, 2025
Last month’s jobs report caused confusion, resulting in a stagnant market today. The recent firing of the head of the Bureau of Labor Statistics could further complicate interpretations this Friday.
In early trading, the S&P 500 rose by 12 points, or 0.2%. Earlier this week, midday selling was noted, but buying picked up towards the market’s close.
Confusing Market Signals
The market seems stuck due to the unclear jobs report for August 2025. It showed hiring slowing down to just 55,000 jobs, well below the expected 175,000, yet the unemployment rate dropped to 3.9%. Such mixed data has everyone guessing about the economy’s direction.
With the Bureau of Labor Statistics chief fired, this Friday’s data could be unpredictable. The political aspect adds extra uncertainty, meaning the market might react strongly to any numbers released. Now is not the time for major bets.
Market anxiety is evident, with the CBOE Volatility Index (VIX) steady around 19, notably higher than this year’s lows. This indicates traders are anticipating possible sharp moves. Daily trends show midday selling pressure, but buyers often step in to support levels before the market closes.
Options as a Strategic Move
In the upcoming weeks, we should think about using options to guard against sudden drops or to prepare for a breakout from the current trading range. Buying straddles or strangles might be a smart way to leverage the expected increase in volatility, regardless of the market’s direction. It’s more about profiting from the eventual move than predicting where it goes.
Looking back, we experienced similar uncertainty around economic data in late 2022, right before significant market shifts. Historically, unreliable and politically charged data often leads to crucial price movement. We should be ready for that pattern to emerge again.
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by VT Markets
Sep 4, 2025
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