Bank of America: Stock gains to be limited until US jobs picture shows clear direction

U.S. bank strategists say the stock market may remain stuck in a trading range until there are clear signs of weakness or strength in U.S. jobs data, according to Michael Hartnett and others at the bank. The team said several market factors are supporting both bullish and bearish arguments. While optimists say technology and semiconductor stocks, including this year's leader Nvidia NVDA US, have rebounded from key technical levels, pessimists warn that "nothing good happens" when bond yields and bank stocks fall together. Hartnett wrote in a note that a clear direction in the jobs market would "eliminate the uncertainty of the fall" after the August nonfarm payrolls rose 142,000, below expectations. "Until then, the risk will rotate, not rip or retreat."