JPMorgan: Nonfarm Payrolls Must Be "Just Right" to Sustain Stock Rally

JPMorgan Chase has warned that the upcoming U.S. nonfarm payroll data release must be "just right" to support the ongoing stock market rally. The bank's trading department, led by Andrew Tyler, has stated that new job additions should fall within a specific range to avoid market decline or increased pressure on stocks. If the new job additions are below 150,000 or exceed 230,000, the stock market could face downward pressure.

The trading department has also highlighted a pessimistic scenario where the job market cools faster than expected, potentially dragging on consumer spending. In this case, a number as low as 110,000 new jobs could cause the S&P 500 index to fall by 1.5%, indicating that concerns surrounding global trade are affecting the U.S. economy at a faster pace than anticipated.

This warning from JPMorgan Chase comes as investors await the release of the nonfarm payroll data, which is scheduled for 21:30 tonight. The data is expected to provide insights into the health of the U.S. labor market and potentially influence the Federal Reserve's interest rate decisions. As such, the market will be closely watching the data release to gauge its impact on the ongoing stock market rally.