Job growth surged in December, with nonfarm payrolls rising by 256,000, according to the Bureau of Labor Statistics. This figure surpasses the 155,000 forecast and November's revised 212,000. The unemployment rate fell to 4.1%, and broader unemployment, including discouraged and part-time workers, decreased to 7.5%; stocks dropped while Treasury yields spiked as traders reassessed the likelihood of Federal Reserve rate cuts this year. Market expectations now lean toward a slower pace of rate cuts, with futures pricing in a single cut this year. Economists suggest next week’s inflation data will be pivotal in shaping the Fed's monetary policy outlook.
