The release of July non-farm payrolls on August 4th will have a significant influence on the perception of the U.S. economy by investors. A consistent growth in employment, coupled with low inflation, has been supporting the bullish sentiment in the stock market and other risky assets. However, if the labor market shows signs of becoming excessively strong, concerns regarding inflation and the need for continued monetary tightening by the Federal Reserve may arise. On the other hand, a sharp decline in employment could reignite fears of an impending recession.