Tonight, the much-anticipated non-farm payrolls data is about to be released. It is generally predicted that the unemployment rate will remain unchanged at 4.2%, and the number of new non-farm payrolls is expected to reach 160,000. But assuming that when the actual release is made, the unemployment rate is slightly adjusted to 4.3%, and the number of new non-farm payrolls remains at or above the predicted 160,000, such a result is generally acceptable to the market. However, we still have to pay attention to the speed of wage growth.
Recently, many economic indicators have shown strong demand in the US economy. If the non-farm payrolls data is slightly weaker, it may be attributed to the strike at Amazon. But if the wage growth rate drops sharply, it will be puzzling - the economy is obviously in good momentum, why is wage growth slowing down? This situation may cause panic in the market and even cause a crisis.
Of course, if all the data only decline slightly, then the risk market is likely to rebound quickly after the data is released. Since this week, the risk market has fallen continuously, and many negative sentiments may have been almost digested. However, if the data really deteriorates significantly, then I'm sorry, the market may have to continue to go downhill.