Stagflation clouds loom over Nonfarm Payrolls night, strong employment may support high interest rate resilience

According to a report by Golden Ten Data, Patrick Munnelly from Tickmill Group pointed out that investors are concerned about the risks of stagnating US economic growth and rising inflation. The increase in energy costs caused by the Middle East conflict has reignited market fears of inflation and led to a downward revision of expectations for Federal Reserve interest rate cuts in the coming months. Munnelly stated that strong employment data may indicate that the economy can still withstand higher and longer-lasting interest rates, while weak employment reports could intensify market concerns about economic weakness.