A slew of labor market data headlined by the September jobs report will be in focus for investors this week.
Wall Street strategists argue there’s a clear read through on what type of data would be supportive of a further rally in stocks.
Therefore a stronger than expected jobs report would likely be seen as a positive for stocks.
The September jobs report is expected to show 130,000 nonfarm payroll jobs were added to the US economy, with unemployment holding steady at 4.2%, according to data from Bloomberg.
Subsequently, a bad jobs report on Friday could have the opposite impact on stocks.
Investors will be focusing this week on a variety of labor market data, including the September jobs report. As investors try to gauge how fast the US economy is contracting, updates on activity in the manufacturing and services sectors will also be of interest.
Wall Street strategists contend that it is evident what kinds of data would encourage an additional stock market rally.
Stuart Kaiser, head of Citi’s US equity trading strategy, told Yahoo Finance that he is “hugely bullish” about stocks in the event that the Fed doesn’t make cuts because the economy requires them. Therefore, stocks would probably benefit from a stronger-than-expected jobs report.
According to Bloomberg data, the US economy is predicted to have added 130,000 nonfarm payroll jobs in September, while the unemployment rate remained at 4.2%. The US economy created 142,000 new jobs in August, and the jobless rate decreased to 4.2%.
Kaiser declared that “everything is about the consumer and the growth side of the economy.”. “I think the equities markets will benefit from any data that indicates consumer spending is holding steady and that the Fed and the public are both concerned about weakness.”. “.
Therefore, stocks might react negatively to Friday’s poor jobs report.
Rate cuts won’t be sufficient to support stocks in that scenario, Kaiser predicted, and prices will drop if it turns out that they began cutting because they have a real fear of weakness in the labor market. Thus, it is important to understand why the Fed is making these cuts. Payrolls will also assist in addressing that. “. .
