Brace For Volatility Amid Biggest Payrolls Uncertainty Since Pandemic

Authored by Simon White, Bloomberg macro strategist,

Markets would do well to prepare for volatility today as the range of estimates for today’s payrolls data is as large as it’s been in almost three years. With stocks and bonds short-term oversold, there is potential for a reversal, but with such uncertainty, it’s hard to have any edge.

The potential for today’s labor-market data to cause upset is well telegraphed. The data would normally be an important update on the health of the jobs market, but hurricane effects and next week’s election will obfuscate and complicate the underlying picture, and hence the market’s reaction.