[China Galaxy Macro: Strong Non-Farm Payrolls Do Not Indicate Fed Rate Hike This Year] China Galaxy Macro's research report believes that strong non-farm payrolls do not indicate a Federal Reserve rate hike this year. Overall, the May labor market data suggests that employment conditions remain better than market expectations, and the Fed lacks short-term reasons and data to support a rate cut. However, the structure still shows no significant acceleration risk in the labor market, nor will it drive inflation into a spiral, so there is no need to overly price in the risk of a rate hike this year. Although non-farm payroll data has been relatively strong since March, in the short term, it only raises the threshold for a Fed rate cut this year and does not create pressure for a rate hike. Overall, market concerns about rate hikes have become the main trading theme. While China Galaxy Macro leans toward the view that the market has overly priced in the risk of rate hikes, short-term lagging economic data cannot disprove rate hike expectations, and the Fed can only maintain a 'data-dependent' stance. Currently, after the extreme pricing of AI, the market faces a period of correction risk. Liquidity expectations are likely to recover within the year, but it will require waiting.