TechFlow news — Bank of America strategist Michael Hartnett said risk assets could rebound if Friday's U.S. nonfarm payrolls report comes in within expectations.
The strategist noted that if the data shows the U.S. added between 125,000 and 175,000 jobs last month, it would support the case for a soft landing, keep bond yields range-bound, and trigger risk-on trading. Hartnett stated that bulls are "in control" and there are "clear signs" that China's stimulus measures are "working," while the Federal Reserve will pivot to more accommodative policies.
He added that if nonfarm payrolls exceed 225,000 and the unemployment rate falls below 4.1%, it could push the yield on the U.S. 30-year Treasury above 4.5%. Conversely, if job gains fall below 75,000 and the unemployment rate rises above 4.3%, it would signal a "recession."
