Jobs report regains ‘crown’ as most important data for stocks, BofA chart shows

Futures contracts for the S&P 500 index have become more sensitive to U.S. jobs reports than inflation readings, according to BofA Global Research.

The nonfarm payrolls report has “regained its crown as the most important data release for stocks,” BofA analysts said in a note dated Sept. 2. “All eyes will be on the August payrolls report this week,” they said, referring to the U.S. employment report that the Bureau of Labor Statistics will release on Friday.

S&P 500 futures inflation readings from the consumer-price index “than at any other point post-Covid, with the payrolls report now the bigger source of volatility,” according to their research. With inflation having eased considerably from its 2022 peak, investors are now watching the labor market closely for signs of softening.