Market Prep: Labour Market & Mega Caps in Focus

Software Sector Stocks Analysis

Hello Traders,

Today’s JOLTS report showed U.S. job openings falling more than expected, signaling a continued cooling in labor demand. Hiring momentum remains soft, and the ratio of job openings to unemployed workers is moving closer to pre-pandemic levels, reinforcing the idea that the labor market is slowing in an orderly way.

Looking ahead to Friday’s NFP, most analysts expect moderate payroll growth and softer wage pressures, consistent with a cooling jobs market. However, Goldman Sachs expects a stronger-than-expected NFP print, suggesting labor demand may still be more resilient than consensus assumes.

For the Fed, this creates a balanced risk. If NFP comes in strong, it could delay the pace of easing but is unlikely to reverse it unless wage growth reaccelerates. If NFP is softer and aligns with JOLTS, it would further support confidence in easing policy this year, especially if inflation continues to cool.

Let’s start with MSFT 0.00%↑