The US non-farm data in July was worse than expected. Is the risk of potential economic recession overestimated?

Can the CPI at 8:30 tonight help complete the task that the non-farm data failed to complete?

After the US non-farm payrolls data came out last night, there was a major earthquake in the global financial markets.

The August non-farm payrolls report to be released tonight may be one of the most important US non-farm reports in many years. This report will not only "finalize" the Federal Reserve's September interest rate decision, but also provide key clues as to whether the world's largest economy is entering a recession.

In general, the core reason for this round of decline is that the "rebound was less than expected" in the US non-farm payrolls data, which to some extent triggered market concerns about a US recession. In essence, it was due to the release of Nvidia's second-quarter financial report, which led to a drop in performance.

Markets expect the Fed to cut interest rates by more than two percentage points over the next 12 months, which would be the biggest reduction outside of an economic downturn since the 1980s. The first big test comes on Friday.