The stock market climbed to all-time highs, with the S&P 500 setting a closing high of 5,762.48 on Monday. For the week, the S&P rose 0.2% to end at 5,751.07. The index is now up 20.6% year to date and up 60.4% from its October 12, 2022 .
On Friday, we learned the U.S. economy created a healthy 254,000 net new jobs in September. While the number confirms that the labor market isn’t falling apart, the pace of net job creation in this economic cycle.
One labor market indicator that’s been drawing more attention lately is the . In addition to measuring those hired into newly created jobs, this metric also captures those hired into existing jobs vacated by quitters, fired workers, and others. It’s been trending lower, and it .
According to the report, employers hired 5.32 million workers in August. While hires far exceed the 1.61 million people laid off during the period, the hiring rate — the number of hires as a percentage of the employed workforce — has fallen to 3.1%, matching the lowest level of the current economic cycle.
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As we’ve been discussing , the layoff rate has , trending at around 1%, which is below prepandemic levels. That’s a good thing.
But with , we should be at least a little wary about resting on the economy’s low layoff laurels.
“The hiring rate turns BEFORE layoffs,” Renaissance Macro’s Neil Dutta explained in a research note on Tuesday.
When you think about how well-managed companies operate, this makes sense.
Managers know that a hiring freeze isn’t great news
When the economic tides begin to go out, companies usually don’t go from hiring people one month to immediately sending workers to the unemployment office in the next month.
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Unless you’re facing a major business or economic calamity, you probably don’t want to take a hatchet to the headcount. Because what if business activity quickly turns around and you need those workers?
For starters, companies can reduce or freeze hiring, which means not filling new job openings or backfilling roles vacated by former employees. It’s a relatively easy way to keep expenses contained.
If challenges persist, then layoffs could be the next option.
It’s worth mentioning that layoff activity does not need to increase for the unemployment rate to rise. Think about it. Even when the economy is booming, — but many will quickly go back to work if hiring activity is strong. If the same number of people get laid off into an economy with weakening hiring activity, then more jobseekers will not be able to get back to work, and unemployment rises.
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Stay vigilant
The JOLTS survey — which provides data on job openings, hiring activity, layoffs, and quits — can be helpful in predicting what’s to come for the major headline economic metrics like net job creation, the unemployment rate, and inflation.
For example, when the posted by employers is high and rising, then you can expect payroll employment to rise and the unemployment rate to fall or stay low. An could be a reflection of worker confidence in a labor market with increasingly competitive wages, which is a .
Today, with but the layoff rate still depressed, the JOLTS metric to watch right now may be the falling hiring rate.
The question now is whether the economy, , will develop in a way that helps stabilize or improve the hiring rate. Friday’s news that the U.S. continues to create jobs at a healthy pace is encouraging.
And to be crystal clear, most metrics point to a strong economy that continues to grow at a healthy clip. In fact, the hiring rate today is higher than where it was during much of the 2009-2020 economic expansion. Our discussion today is not about sounding alarms. However, we should always be mindful of the fact that . And those downturns often come with early warning signs.
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Reviewing the macro crosscurrents
There were a few notable data points and macroeconomic developments from last week to consider:
The labor market continues to add jobs. According to the report released Friday, U.S. employers added 254,000 jobs in September. It was the 45th straight month of gains, reaffirming an economy with growing demand for labor.
Total payroll employment is at a record 159.1 million jobs, up 6.8 million from the prepandemic high.
The unemployment rate — that is, the number of workers who identify as unemployed as a percentage of the civilian labor force — declined to 4.1% during the month. While it continues to hover near 50-year lows, the metric is near its highest level since October 2021.
While the major metrics continue to reflect job growth and low unemployment, the labor market isn’t as hot as it used to be.
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Wage growth ticks up. Average hourly earnings rose by 0.4% month-over-month in September, up from the 0.5% pace in August. On a year-over-year basis, this metric is up 4.0%.
Job openings rise. According to the , employers had 8.04 million job openings in August, up from 7.71 million in July. While this remains slightly above prepandemic levels, it’s from the March 2022 high of 12.18 million.
During the period, there were 7.12 million unemployed people — meaning there were 1.13 job openings per unemployed person. Once a sign of , this telling metric is now below prepandemic levels.
Layoffs remain depressed. Employers laid off 1.61 million people in August. While challenging for all those affected, this figure represents just 1.0% of total employment. This metric continues to trend near pre-pandemic low levels.
Hiring activity, while cooling, continues to be much higher than layoff activity. During the month, employers hired 5.32 million people, down from 5.42 million in July.
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People are quitting less. In August, 3.08 million workers quit their jobs. This represents 1.9% of the workforce. It continues to move below the prepandemic trend.
A low quits rate could mean a number of things: more people are satisfied with their job; workers have fewer outside job opportunities; wage growth is cooling; productivity will improve as fewer people are entering new unfamiliar roles.
Job switchers still get better pay. According to , which tracks private payrolls and employs a different methodology than the BLS, annual pay growth in September for people who changed jobs was up 6.6% from a year ago. For those who stayed at their job, pay growth was 4.7%.
Unemployment claims tick higher. rose to to 225,000 during the week ending September 28, down from 219,000 the week prior. This metric continues to be at levels historically associated with economic growth.
Card spending data is holding up. From JPMorgan: “As of 25 Sep 2024, our Chase Consumer Card spending data (unadjusted) was 0.6% above the same day last year. Based on the Chase Consumer Card data through 25 Sep 2024, our estimate of the U.S. Census September control measure of retail sales m/m is 0.13%.“
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Gas prices fall. From : “Despite literal and figurative storm clouds here and abroad, the national average for a gallon of gas still fell by three cents from last week to $3.19. The devastation wrought by Hurricane Helene did little to impact gasoline supply, but it crushed demand in affected areas by destroying infrastructure and causing power outages.”
Mortgage rates tick higher. According to , the average 30-year fixed-rate mortgage rose to 6.12%, up from 6.08% last week. From Freddie Mac: “The decline in mortgage rates has stalled due to a mix of escalating geopolitical tensions and a rebound in short-term rates that indicate the market’s enthusiasm on rate cuts was premature. Zooming out to the bigger picture, mortgage rates have declined one and a half percentage points over the last 12 months, home price growth is slowing, inventory is increasing, and incomes continue to rise. As a result, the backdrop for homebuyers this fall is improving and should continue through the rest of the year.”
There are in the U.S., of which 86 million are and of which are . Of those carrying mortgage debt, almost all have , and most of those mortgages before rates surged from 2021 lows. All of this is to say: Most homeowners are not particularly sensitive to movements in home prices or mortgage rates.
Construction spending ticks lower. declined 0.1% to an annual rate of $2.13 trillion in August.
Manufacturing surveys don’t look great. From S&P Global’s : “The September PMI survey brings a whole slew of disappointing economic indicators regarding the health of the US economy. Factories reported the largest monthly drop in production for 15 months in response to a slump in new orders, in turn driving further reductions in employment and input buying as producers scaled back operating capacity.”
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Similarly, the ISM’s signaled contraction in the industry.
Keep in mind that during times of perceived stress, soft survey data tends to be more exaggerated than hard data.
Services surveys look great. From S&P Global’s : “U.S. service sector businesses reported a strong end to the third quarter, with output continuing to grow at one of the fastest rates seen over the past two-and-a-half years. After GDP rose at a 3.0% rate in the second quarter, a similar strong performance looks likely in the three months to September. Encouragingly, inflows of new business in the service sector grew at a rate only marginally shy of August’s 27-month high. Lower interest rates have already been reported by survey contributors as having buoyed demand, notably for financial services which, alongside healthcare, remains an especially strong performing sector.”
Near-term GDP growth estimates remain positive. The sees real GDP growth climbing at a 2.5% rate in Q3:
Putting it all together
We continue to get evidence that we are experiencing a where inflation cools to manageable levels .
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This comes as the Federal Reserve continues to employ very tight monetary policy in its . More recently, with inflation rates having from their 2022 highs, the Fed has taken a less hawkish stance in — even .
It would take monetary policy as being loose or even neutral, which means we should be prepared for relatively tight financial conditions (e.g., higher interest rates, tighter lending standards, and lower stock valuations) to linger. All this means for the time being, and the risk the into a recession will be relatively elevated.
At the same time, we also know that stocks are discounting mechanisms — meaning that .
Also, it’s important to remember that while recession risks may be elevated, . Unemployed people are , and those with jobs are getting raises.
Similarly, as many corporations . Even as the threat of higher debt servicing costs looms, give corporations room to absorb higher costs.
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At this point, any given that the .
And as always, should remember that and are just when you enter the stock market with the aim of generating long-term returns. While , the long-run outlook for stocks .
Dozens of protesters from the “Religious Zionist Reservists Forum” and the “Shared Service Forum” demonstrated Saturday evening outside the home of Finance Minister Bezalel Smotrich in Kedumim.
The protesters arrived with a direct and pointed message, centered on a symbolic “draft order,” calling on Smotrich to “enlist” on behalf of the State of Israel and oppose what they termed the “sham law” being advanced by MK Boaz Bismuth and the Knesset’s haredi parties.
Among the protesters in Kedumim were the parents of Sergeant First Class (res.) Amichai Oster, who fell in battle in Gaza. Amichai grew up in Karnei Shomron and studied at the Shavei Hevron yeshiva.
Protesters held signs reading: “Smotrich, enlist for us,” along with the symbolic “draft order,” calling on him to “enlist for the sake of the State’s security and to save the people’s army – stand against the bill proposed by Bismuth and the haredim!”
Parallel demonstrations were held outside the homes of MK Ohad Tal in Efrat and MK Michal Woldiger in Givat Shmuel.
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Representatives of the “Shared Service Forum” said: “We are members of the public that contributes the most, and we came here to say: Bezalel, without enlistment there will be no victory and no security. Do not abandon our values for the sake of the coalition. The exemption law is a strategic threat, and you bear the responsibility to stop it and lead a real, fair draft plan for a country in which we are all partners. It’s in your hands.”
The global carbon market is at an inflection point as discussions during the recent COP meeting in Brazil demonstrated.
After years of negotiations over carbon market rules under Article 6 of the Paris Agreement, countries are finally moving on to the implementation phase, with more than 30 countries already developing Article 6 strategies. At the same time, the voluntary market is evolving after a period of intense scrutiny over the quality and integrity of carbon credit projects.
The era of Carbon Markets 2.0 is characterised by high integrity standards and is increasingly recognised as critical to meeting the emission reduction goals of the Paris Agreement.
And this ongoing transition presents enormous opportunities for financial institutions to apply their expertise to professionalise the trade of carbon credits and restore confidence in the market.
The engagement of banks, insurance companies, asset managers and others can ensure that carbon markets evolve with the same discipline, risk management, and transparency that define mature financial systems while benefitting from new business opportunities.
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Carbon markets 2.0
Carbon markets are an untapped opportunity to deliver climate action at speed and scale. Based on solutions available now, they allow industries to take action on emissions for which there is currently no or limited solution, complementing their decarbonization programs and closing the gap between the net zero we need to achieve and the net zero that is possible now. They also generate debt-free climate finance for emerging and developing economies to support climate-positive growth – all of which is essential for the global transition to net zero.
Despite recent slowdowns in carbon markets, the volume of credit retirements, representing delivered, verifiable climate action, was higher in the first half of 2025 than in any prior first half-year on record. Corporate climate commitments are increasing, driving significant demand for carbon credits to help bridge the gap on the path to meeting net-zero goals.
According to recent market research from the Voluntary Carbon Markets Integrity initiative (VCMI), businesses are now looking for three core qualities in the market to further rebuild their trust: stability, consistency, and transparency – supported by robust infrastructure. These elements are vital to restoring investor confidence and enabling interoperability across markets.
MSCI estimates that the global carbon credit market could grow from $1.4 billion in 2024 to up to $35 billion by 2030 and between $40 billion and $250 billion by 2050. Achieving such growth will rely on institutions equipped with capital, analytical rigour, risk frameworks, and market infrastructure.
Carbon Markets 2.0 will both benefit from and rely on the participation of financial institutions. Now is the time for them to engage, support the growth and professionalism of this nascent market, and, in doing so, benefit from new business opportunities.
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The opportunity
Institutional capital has a unique role to play in shaping the carbon market as it grows. Financial institutions can go beyond investing or lending to high-quality projects by helping build the infrastructure that will enable growth at scale. This includes insurance, aggregation platforms, verification services, market-making capacity, and long-term investment vehicles.
By applying their expertise and understanding of the data and infrastructure required for a functioning, transparent market, financial institutions can help accelerate the integration of carbon credits into the global financial architecture.
As global efforts to decarbonise intensify, high-integrity carbon markets offer financial institutions a pathway to deliver tangible climate impact, support broader social and nature-positive goals, and unlock new sources of revenue, such as:
Leveraging core competencies for market growth, including advisory, lending, project finance, asset management, trading, market access, and risk management solutions.
Unlocking new commercial pathways and portfolio diversification beyond existing business models, supporting long-term growth, and facilitating entry into emerging decarbonisation-driven markets.
Securing first-mover advantage, helping to shape norms, gain market share, and capture opportunities across advisory, structuring, and product innovation.
Deepening client engagement by helping clients navigate carbon markets to add strategic value and strengthen long-term relationships.
Harnessing the opportunity
To make the most of these opportunities, financial institutions should consider engagements in high-integrity carbon markets to signal confidence and foster market stability. Visible participation, such as integrating high-quality carbon credits into institutional climate strategies, can help normalise the voluntary use of carbon credits alongside decarbonisation efforts and demonstrate leadership in climate-aligned financial practices.
Financial institutions can also deliver solutions that reduce market risk and improve project bankability. For instance, de-risking mechanisms like carbon credit insurance can mitigate performance, political, and delivery risks, addressing one of the core challenges holding back investments in carbon projects.
Additionally, diversified funding structures, including blended finance and concessional capital, can lower the cost of capital and de-risk early-stage startups. Fixed-price offtake agreements with investment-grade buyers and the use of project aggregation platforms can improve cash flow predictability and risk distribution, further enhancing bankability.
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By structuring investments into carbon project developers, funds, or the broader market ecosystem, financial institutions can unlock much-needed finance and create an investable pathway for nature and carbon solutions.
For instance, earlier this year JPMorgan Chase struck a long-term offtake agreement for carbon credits tied to CO₂ capture, blending its roles as investor and market facilitator. Standard Chartered is also set to sell jurisdictional forest credits on behalf of the Brazilian state of Acre, while embedding transparency, local consultation, and benefit-sharing into the deal. These examples offer promising precedents in demonstrating that institutions can act not only as financiers but as integrators of high-integrity carbon markets.
The institutions that lead the growth of carbon markets will not only drive climate and nature outcomes but also unlock strategic commercial advantages in an emerging and rapidly evolving asset class.
However, the window to secure first-mover advantage is narrow: carbon markets are now shifting from speculation to implementation. Now is the moment for financial institutions to move from the sidelines and into leadership, helping shape the future of high-integrity carbon markets while capturing the opportunities they offer.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
Graham Fleming, CEO of Finance of America [Composite image; source: Finance of America/DI Studio]
Finance of America Companies, a leading provider of home equity-based financing solutions for a modern retirement, and funds managed by Blue Owl Capital, a leading alternative asset manager, announced an enhanced $2.5 billion strategic partnership to accelerate product innovation and distribution for the nation’s fast-growing retirement demographic.
With more than 10,000 Americans entering retirement age every day, the market for home equity access continues to expand. FOA said its collaboration with New York City-based Blue Owl positions it to capture significant share in this rapidly evolving sector.
“This is a pivotal moment not just for Finance of America, but for the senior finance market as a whole,” Graham Fleming, CEO of Finance of America, said in a statement. “By aligning with Blue Owl, we are creating a platform of scale and innovation to better serve one of the fastest-growing demographics in the United States.”
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The enhanced partnership includes, per FOA:
$2.5 billion commitment for new product innovation, providing scale and liquidity to support origination growth across multiple asset classes
$50 million equity investment in Finance of America, enhancing long-term alignment between the companies and supporting FOA’s continued growth initiatives
Joint innovation and product-development initiative focused on the continuous rollout of new, differentiated financial products tailored for people looking to maximize freedom, security, and opportunity throughout their retirement
This product expansion will complement FOA’s existing industry-leading reverse mortgage product suite while strengthening the company’s commitment to innovation and its role as a leader in delivering powerful financial solutions for retirees.
FOA said it continues to empower retirees with responsible, flexible access to capital to support aging in place, healthcare expenses, and lifestyle goals.
The partnership reinforces Finance of America’s mission to provide comprehensive, retirement-focused financial solutions, with the goal of expanding beyond reverse mortgages to become the nation’s leading, full-spectrum home equity lending platform, the company said.
“We believe Finance of America is uniquely positioned to redefine how financial products are delivered to retirees,” said David Aidi, senior managing director and co-head of Asset Based Finance at Blue Owl.
“This partnership provides the capital, the strategic alignment, and the innovation engine to build category-defining products at scale,” added Ray Chan, senior managing director and co-head of Asset Based Finance at Blue Owl.
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R E A D N E X T
Little Elm’s Sachchit Balamurugan, an incoming senior at TOPS, flew to Japan Friday to present his ACC cancer detection app at the International Young Researchers’ Conference. He’s also won first place at a BPA national mobile app competition, won an award at the NASA Space App Challenge, started a nonprofit called Youth Opportunities in Tech Innovation—and done lots, lots more.
Tre Welch, Tremedics Medical Devices Inc., Leon Jacobson, Ted Price, Nerveli Inc., Sarah Iselin, Blue Cross Blue Shield of Massachusetts, TechFW, MassChallenge, ClearLeaf, Feathery, Algas Organics, Coastal Protection Solutions
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Topgolf said the limited-time experience is available at all Topgolf U.S. venues Feb. 1 through April 13. It’s accompanied by a national in-venue sweepstakes and limited-time menu items.
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![A slide showing Tremedics' award-winning technology for treating narrowed aortas in children (left). Their special dissolving stent (right) opens blocked blood vessels and then disappears as the child grows, eliminating the need for repeated surgeries and potentially helping thousands of the 40,000 U.S. babies born with heart defects annually. [Image source: Tremedics]](https://s24806.pcdn.co/wp-content/uploads/2025/05/Tremedic-presentation.jpg)
