Friday's jobs report is expected it to be pivotal not only for stock and bond investors but for the Federal Reserve, which is weighing whether to take further steps to boost the struggling US economy.
"I think this one is more important than the last few," said RBS Treasury strategist John Briggs. "The Fed's on edge...If this number is really good, it sets the tone for the next few weeks and sets a range for the bond market. If it's awful, it opens the door for whether the Fed does quantitative easing."
The government is expected to report that nonfarm payrolls dropped by 100,000 in August, the third straight month of job declines, with private sector employment increasing by only 41,000, according to a Reuters survey. The report is due out at 8:30 am.
Investors are likely to focus on the private payrolls number, analysts said, given that overall payrolls data is expected to have been influenced by the loss of government census hiring, among other factors.
A much-stronger-than-expected report could ease concerns about economic weakness and cause bond prices to decline sharply while give stocks a boost.
