Trading the big jobs report: How JPMorgan sees stocks reacting to these scenarios

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Labor Economy Noticias

United States,S&P 500 Index,Personnel

See how the firm's research team expects the market to move in the wake of Friday's key data release.

Friday's all-important jobs report could have big implications for the stock market's moves that day. JPMorgan's research team has some ideas on what could happen. The firm's research arm, which is separate from JPMorgan's trading desk, issued its expectations for how stocks will move following the key release from the Bureau of Labor Statistics. These potential market outcomes are tied to the reading of the headline nonfarm payrolls number.

In another potential outcome, JPMorgan's research team sees the jobs number landing between 200,000 and 300,000, which would propel the S & P 500 higher by 1% to 1.5%. While this could mitigate recessionary concerns, traders will need to watch hourly wage data for any signs of inflation. The firm sees a 25% likelihood of this scenario taking place. On the other hand, JPMorgan said a print in the range of 50,000 to 100,000 would push the broad index lower by 0.5% to 1%.

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