The U.S. unemployment rate data in the evening was in line with expectations and was released at 4.2%. The recession hype in the macro market was largely relieved. Non-farm payrolls were higher than the previous value, lower than the forecast value, and higher than the previous value. The data was neither too big nor too small. It is really difficult for politicians to give such mild data before the final interest rate cut cycle.
From the perspective of sentiment, a 25 basis point interest rate cut on the 19th is still a high probability event. The market needs to ease economic pressure, but it will not create a recession panic right away. Moreover, with the U.S. election imminent, maintaining financial stability as much as possible is the top priority. In the short term, if there is no unexpected negative news, such as the escalation of the war or the collapse of a large institution, the market will most likely continue to wash at the bottom. Let's clean up the leverage first.
