As probabilities of benign-er outcomes rise, FAANG/Nasdaq should rebound first

Soft surveys show probabilities rising of “growth scare” and other benign views…

The big event this week will be the May payrolls report. This is a case where bad news is good news. A strong jobs figure and anxiety will surge regarding an overly strong economy. As we discuss below, even if this proves to be a positive payrolls surprise, the underlying trends in the labor market seem to be softening sharply.

In conversation after conversation, investors describe the current macro env...

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