According to Bloomberg, Bank of America (BofA) strategist Michael Hartnett said that if the U.S. monthly employment report released on Friday is within the expected range, risk assets may rebound.

The U.S. Bureau of Labor Statistics will release the September non-farm employment report at 8:30 pm Taiwan time on the 4th. Hartnett said if data showed the U.S. added between 125,000 and 175,000 jobs last month, it would support talk of a soft landing and keep bond yields within range, triggering a risk-on trade.

The median forecast among economists, according to a Bloomberg survey, was for 150,000 additions.

Hartnett also said that if the report shows that the number of new non-farm jobs exceeds 225,000 and the unemployment rate is below 4.1%, it will push the 30-year Treasury yield above 4.5%. If the number of new jobs is less than 75,000 and the unemployment rate is higher than 4.3%, it will be considered a sign of "recession."

Michael Hartnett warned in March that the market was showing signs of a bubble amid the record surge of the Magnificent Seven and the all-time highs of cryptocurrencies. Bitcoin prices have continued to consolidate between $50,000 and $70,000 since reaching an all-time high of about $73,750 in March, falling as low as $49,200. Bitcoin was trading at $61,366 at press time.

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