Strong U.S. Job Growth Rattles Markets as Fed Rate Cuts Look Unlikely

December's robust employment data raises Treasury yields and dampens investor hopes for further Federal Reserve easing in 2025.

The U.S. economy added 256,000 jobs in December, exceeding expectations and lowering the unemployment rate to 4.1%.
The stronger-than-expected labor market data has reduced the likelihood of additional Federal Reserve rate cuts this year, impacting market sentiment.
Major U.S. stock indices, including the S&P 500, saw significant declines, with tech favorites like Tesla, Nvidia, and Apple experiencing notable losses.
Oil prices surged over 4%, reaching three-month highs, driven by reports of potential new U.S. sanctions on Russian oil exports targeting Indian and Chinese markets.
Walgreens Boots Alliance, the worst-performing S&P 500 stock in 2024, rebounded sharply after surpassing earnings expectations, while Constellation Brands faced pressure due to a weaker outlook for its wine and spirits division.