The possibility of a government shutdown has been avoided, but treasury yields are approaching 5% as strong job numbers increase the risk of the Fed implementing tighter monetary policy. Here’s a recap of the week’s events in the markets.

The week was filled with significant events that had an impact on the markets, and it all culminated in a surprisingly strong September jobs report. The US Congress managed to avoid a government shutdown by passing a stopgap funding bill, but the House of Representatives also made headlines by ousting Speaker Kevin McCarthy. Treasury yields continued to rise throughout the week, causing turmoil in the bond market. The jobs report exceeded expectations and indicated a strong labor market, leading economists to predict further Federal Reserve tightening. Walmart reported a decrease in food demand due to the use of weight-loss drugs, which had negative effects on beverage giants like Coca-Cola and PepsiCo. Exxon Mobil is considering acquiring Pioneer Natural Resources in a potentially record-breaking deal, and the stock market saw some rebounding after weeks of decline. There are also important economic reports and earnings releases to watch in the week ahead.