The Top Questions Going Into Friday's Jobs Report

The upcoming jobs report is highly anticipated due to the current macroeconomic landscape, with inflation under control and growth slowing but not in recession territory. The market is nervous about a potential hard landing, given tight financial conditions and the yield curve inversion. Goldman Sachs expects a slight miss in the jobs report, which could lead to short-term risk-off sentiment before recovery. A beat in the jobs report would result in equities rising, bonds falling, and the USD strengthening. The unemployment rate is also crucial, with a higher print potentially leading to a 50bps cut in September. The Sahm rule, which has never failed to predict a recession, has been triggered, adding to market anxiety.