The Zhitong Finance App learned that Morgan Stanley strategist Michael Wilson said that if US employment data weakens moderately this week, it may increase the probability that the Fed will cut interest rates further and fuel bullish sentiment about the US stock market. Wilson said in a report, “We are now clearly back to the 'good news is bad news/bad news is good news' situation.” He explained that although a strong labor market is beneficial to the economy, it will reduce the probability that the Federal Reserve will cut interest rates in 2026.

The Zhitong Finance App learned that Morgan Stanley strategist Michael Wilson said that if US employment data weakens moderately this week, it may increase the probability that the Fed will cut interest rates further and fuel bullish sentiment about the US stock market. Wilson said in a report, “We are now clearly back to the 'good news is bad news/bad news is good news' situation.” He explained that although a strong labor market is beneficial to the economy, it will reduce the probability that the Federal Reserve will cut interest rates in 2026.