Morgan Stanley: Non-farm payroll data will be a real test for US stocks

Morgan Stanley stated that Friday's non-farm payroll report will be crucial in determining the direction of US stock market valuations. If it exceeds expectations, it may boost investor confidence. Strategists like Michael Wilson mentioned that if the non-farm payroll data is stronger than expected and the unemployment rate decreases, investors may believe that the risks to economic growth have diminished, supporting an increase in stock market valuations and helping lagging sectors catch up. They warned that if the non-farm data is weak and the unemployment rate rises further, it may reignite concerns about economic growth and, like in August, impact stock valuations