Citi traders expect the Fed to make deeper rate cuts, with three 50 basis point cuts expected within the year.

Odaily Planet Daily News Traders are waiting for non-farm payroll data, with the market expecting the report to show a rebound in August employment numbers and a slight decrease in the unemployment rate. S&P 500 index futures fell nearly 0.5%, poised to decline for the fourth consecutive day; Nasdaq 100 index futures dropped 0.8%, while Dow futures fell by nearly 0.3%. Concerns about the economy slowing down excessively have led to a retreat in risk assets this week, with the policy-sensitive 2-year U.S. Treasury yield falling 18 basis points since Tuesday. Swap contracts fully reflect the possibility of a 25 basis point rate cut by the Fed in two weeks, with a one-third chance of a 50 basis point cut. However, Citigroup traders expect a more aggressive rate cut, anticipating three 50 basis point rate cuts within the year. "Risk markets are currently more sensitive to growth dynamics than to interest rates," said Bilal Hafeez, CEO and Research Director of Macro Hive. "If the data is weak, risk markets such as the stock market will suffer a heavy blow." (Jinshi)