PANews reported on June 7th that, according to a macro research report by China Galaxy Securities, a strong non-farm payrolls report does not necessarily mean the Federal Reserve will raise interest rates this year. Overall, the May labor market data indicates that the employment situation remains better than market expectations, and the Fed lacks the reasons and data to support a rate cut in the short term. However, the structure still shows no significant risk of an accelerating labor market, nor will it push inflation into a spiral; therefore, there is no need to over-price the risk of a rate hike this year. Although the non-farm payrolls data since March has been relatively strong, in the short term it only increases the threshold for a Fed rate cut this year and will not lead to pressure for a rate hike.

Overall, market concerns about interest rate hikes have become the main theme of trading. Although China Galaxy Macro believes the market has overpriced in the risk of interest rate hikes, short-term lagging economic data cannot disprove the expectation of rate hikes, and the Federal Reserve can only maintain its "data dependence." Currently, the market faces the risk of a correction after the extreme pricing of AI, and a recovery in liquidity expectations is expected within the year, but this will require waiting.