Finance Brain
Courses
Home
Sign in
← The Economic Calendar
1 / 4
Question
Why can a strong non-farm payrolls reading cause equity markets to fall?
1
Strong employment data causes the Federal Reserve to immediately raise interest rates on the same day
2
The non-farm payrolls report is only relevant to bond markets, and falling bonds automatically pull equities lower
3
Markets price expectations rather than outcomes — if the actual figure exceeds the whisper number or consensus, it raises expectations of tighter monetary policy, which can weigh on equity valuations
4
Strong employment always signals inflation, which directly reduces corporate profits
Press 1–4 to pick an answer
Finance Brain