TRADING NFP – OCTOBER 2025 JPM US MARKET INTELLIGENCE

US MKT INTEL’S NFP SCENARIO ANALYSIS

Feroli’s sees 50k jobs being added, slightly below the Street’s estimate of 57k; in August, 22k jobs were added. For the unemployment rate (U.3) he sees 4.3%, in line with the Street’s estimate. For Average Hourly Earnings, he sees +0.3% MoM and +3.7% YoY.

The following scenario analysis is a trading desk view from JPM US

Market Intelligence.

• [5%] Above 100k. SPX is flat to losing 1.5%

• [25%] Between 70k – 100k. SPX +0.5% to -0.5%

• [40%] Between 30k – 70k. SPX gains 0.5% – 1%

• [25%] Between 0k – 30k. SPX gains 0.25% - 0.5%

• [5%] Below 0k. SPX is flat to losing 1%.

• WHAT ARE OPTIONS PRICING? For options expiring on October 3, the market is

pricing ~2% move, as of market close on Nov 17, though this may also include heightened vol around NVDA’s earnings.

• US MKT INTEL ON NFP – Currently, we are scheduled to receive Sep NFP on

Thursday and Nov NFP on Dec 5; it is unclear that Oct data will be released, wholly

or partially. An inline print is Goldilocks, as it enough to propel the market forward

since it will be strong enough that fears of slowing economic growth should be

assuaged but not strong enough of a print to reignited inflation fears. Too strong of a

print pushes the Fed to the sidelines; if the Fed is paused because growth is too

strong, this is positive. SPX earnings are more correlated to nominal GDP growth

than to real GDP growth. Alternatively, a too cool print will spark recession /

stagflation fears. Given recent hawkish Fedspeak, 50bp may be too high a bar for

the Fed to jump over, highlighting one risk to a cooler print. Separately, the Fed and

the market are adjusting to finding the new equilibrium level of jobs given flat /

declining population growth