Institutional Analysis: The sell-off in US stocks may be excessive, and bets on significant interest rate cuts by the Federal Reserve may ease

ChainCatcher news, institutional forecasting models indicate that the expansion rate of the U.S. labor market may slow down, which could suggest an overall cooling trend. However, if today's non-farm payroll report exceeds expectations, concerns about a hard landing may dissipate, and the sudden risk-averse sentiment in the market may also ease. Forecasting models show that non-farm payrolls in the U.S. are expected to moderately increase from 206,000 in June to 231,000 in July, surpassing the widely expected 175,000. The unemployment rate is expected to remain unchanged at 4.1%. The Federal Reserve is expected to begin cutting interest rates in the coming months, with the likelihood of significant rate cuts this year increasing.

Nevertheless, while the U.S. economy has shown signs of slowing down, there has not been a significant disruption. If this situation continues, the sell-off in the stock market may be somewhat excessive, and bets on the Federal Reserve making substantial rate cuts may ease slightly.