Investors are eagerly awaiting Friday’s employment report, as they look to learn how many jobs were created in August. Economists polled by Reuters are looking for nonfarm payrolls to increase by 210,000.
But while the market will likely cheer news of further employment gains, some experts warn that a too-hot report could take the wind of the market’s sails—as “good news is bad news” proves to be the market meme that just won’t die.
“I don’t think we are” out of the good-news-is-bad-news cycle, said Michael Block, chief strategist at Rhino Trading Partners. “Because every time we get a little bit of good news, there’s still this very hawkish crowd that talks about how imminent a rate hike is.”