According to PANews, Sarmaya Partners President and Chief Investment Officer Wasif Latif commented on the U.S. July nonfarm payrolls, describing the situation as a 'growth scare.' The market is now recognizing that the economy is indeed slowing down. The unemployment rate, being an autocorrelated function, tends to continue moving in the same direction once it starts. Latif believes the market will soon realize that the Federal Reserve's decision not to cut interest rates might be a mistake. Historically, the Fed has waited too long, eventually pushing the economy into a slower growth phase. With the latest data out, the Fed might take necessary actions in September, but that seems distant for the market currently in panic. In this environment, due to economic slowdown and investors turning to quality assets, bond prices are expected to rise.

Additionally, Melissa Brown, Managing Director of Applied Research at Simcorp, noted that the actual nonfarm payroll data was somewhat shocking compared to expectations, being much lower but still positive. This is not the lowest level seen, and employment growth might be low enough to prompt Fed action at the next meeting, though not low enough to indicate a recession. The unemployment figures are higher than expected and higher than they have been for some time, which is concerning but still relatively low. There is still a significant amount of data to be released before the next meeting. While a 50 basis point rate cut is possible, it is unlikely given the Fed's cautious stance. Future data will be crucial in determining the Fed's actions. Hourly wages were slightly lower, indicating that the next inflation report will be very important as it reflects the contrast between overall inflation and income growth.