Saudi stock market recovers as US jobs data eases interest rate concerns

The Saudi stock market (TASI) rebounded at the start of the week, rising approximately 1.4% to 10,544 points. This recovery follows a period of consecutive weekly losses and is driven by improved investor sentiment following weaker-than-expected US employment data, which has reduced bets on interest rate hikes in October.

Key sectors in Saudi Arabia saw gains, including banking, energy, and basic materials. Notably, the utilities sector rose 2.2% following the announcement by ACWA Power and Saudi Energy of the financial close for the Rabigh 2 independent power production expansion project, involving approximately 9.7 billion riyals in financing.

In the United States, the September employment report showed non-farm payrolls increased by only 29,000 jobs, a significant slowdown that has influenced Federal Reserve policy expectations. While job growth slowed, unemployment claims remained at 57-year lows. Market analysts suggest this cooling labor market may ease pressure on the Federal Reserve to implement further monetary tightening, though the long-term trajectory of interest rates remains subject to inflation data.