Payroll Data to Confirm the Most Sluggish U.S. Labor Market Since the Summer of 2020

Stocks and bonds maintain a positive tone ahead of the payrolls data

Highlights

• Stocks and bonds maintain a positive tone ahead of the payrolls data

• The U.S. dollar’s slide has canceled out stock market gains for global investors

• Key components of CPI point to a soft inflation reading next week

• Solid growth data from Japan supports our bullish view on the yen

Key Takeaways

• Markets Show No Sign of Doubt About the Fed Rate Cut: There is some positive follow-through in the U.S. market after yesterday’s outsized gains to new highs, with futures squarely in the green. Investors see a 100% chance of the Fed cutting rates and a 0% chance of a recession rearing its ugly head.