After a year of continuous inflation and rising economic data, the market once thought that the hope of an early rate cut was changing. The recent two sets of inflation data have been somewhat weak, and the recent growth indicators have been somewhat mixed. But this optimism did not last long, as the non-farm payroll report released last Friday had a negative impact on the market, breaking people's expectations of the earliest possible adjustment of policy by the Fed at the June policy meeting.

The Fed is now not only certain to keep interest rates unchanged on Wednesday, but may also maintain a higher interest rate stance for a longer period of time. The May employment report left little room for action for Federal Open Market Committee (FOMC) members. The addition of 272,000 jobs is hard to say is a sign of the labor market or the overall economy in trouble. The slight rebound in annual wage growth is also a bit worrying.