(Bloomberg) — Stocks, bonds and the dollar saw small moves, with traders awaiting a key US jobs reading for evidence on whether the labor market is cooling fast enough to bring the Federal Reserve closer to cutting rates.
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Friday’s payroll report will be crucial in determining whether bets on dramatic Fed policy easing next year are justified — or have gone too far. Buoyed by signs that inflation and wage growth are cooling, traders have ignited bets that cuts of 125 basis points are in store over the next 12 months. Conflicting data may raise doubts, and Fed officials are likely to keep reminding the market that they are in no hurry to ease.
S&P 500 contracts edged lower after a tech-fueled advance in the previous session. Treasury 10-year yields approached 4.2%, rising for a second day. The dollar was little changed.
Countdown to Jobs:
“Keeping things…
