Snippet from UBS Global Wealth Management hinting at market complacency:

  • Markets are already pricing in a soft landing, and increasingly with the belief that relatively little growth pain is required for inflation to gradually return to 2%,”
  • The markets are vulnerable to any signs that the economy, with the Fed’s steering, is at risk of not sticking to that soft landing.

A strong NFP report later on Friday could be a catalyst for expectations of perhaps more Fed rate hikes ahead and could give a bit of a wobble to complacency.

Previews earlier:

And, earlier from UBS: