Non-Farm Payrolls – April 4: The key market driver!

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On Friday, April 4, 2025 at 3:30 PM EET, the U.S. Department of Labor will release one of the most anticipated macroeconomic reports — the Non-Farm Payrolls (NFP). This figure reflects the change in the number of jobs in the non-farm sector and is a crucial indicator of economic health. Strong numbers suggest economic expansion and may prompt the Fed to tighten monetary policy, while weak data could strengthen expectations of rate cuts — impacting stocks, the U.S. dollar, bonds, and commodities.

Historically, NFP reports have triggered significant market reactions, with sharp movements depending on the actual data versus expectations. Analysts forecast a moderate job gain, indicating a slowdown compared to recent months. The release comes amid uncertainty linked to new tariffs introduced by President Trump, which may affect business confidence and consumer spending. Investors are closely watching for signals on the economy’s direction and potential Federal Reserve actions.

How could NFP impact the markets?

Stock market: Weak data could stoke recession fears, pressuring equities, especially in cyclical sectors. However, if seen as a reason for Fed easing, markets may rebound.
U.S. Dollar: A disappointing report might weigh on the dollar as investors adjust their rate expectations. Strong figures, on the other hand, would support USD.
Bonds: Slower job growth could drive demand for U.S. Treasuries, pushing yields lower.
Gold: In case of weak data, gold may rally as a safe haven amid rising expectations of looser monetary policy.

Economists expect a job gain of around 140,000, lower than previous figures — a scenario that could increase market volatility. Get ready for big moves!

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