The US economy is expected to add 214,000 jobs last month, according to economists polled by Dow Jones. However, investors are uncertain about how the number will impact the interest rate outlook and markets.
Goldman Sachs’ John Flood expects a weak report (150,000-200,000) to boost stocks, with a possible 0.5% to 1% rally in the S&P 500. On the other hand, JPMorgan traders predict a strong jobs report will fuel further market gains, forecasting a 0.25% to 1% rally.
If the number falls between 200,000 and 230,000, it could indicate the Fed is on track to cut rates soon, leading to a 0.5% to 0.75% gain in the S&P 500. The current market momentum, with fresh all-time highs across major averages, makes the jobs report crucial for setting the stage for the Dec. 17-18 Federal Reserve meeting and potential rate cuts.
Source: https://www.cnbc.com/2024/12/05/does-the-market-want-a-strong-or-weak-jobs-report-traders-arent-sure.html