Economic Data and Market Highlights
A much higher than expected nonfarm payrolls result (256k vs 164k est.) and the unemployment rate stood at 4.1% further solidified belief that there will be fewer rate cuts by the Fed in 2025 caused the S&P 500 to plunge 1.5% on Friday. This robust labor market data contributed to a rise in Treasury yields, as investors adjusted their expectations regarding potential Federal Reserve rate cuts. The 10-year Treasury yield reaching its highest level since November 2023. Despite solid job growth, concerns about high inflation and its potential impact on the stock market persisted, as evidenced by a 12.6% rise in the CBOE Volatility Index in 2025. Additionally, consumer inflation expectations surged, influenced by concerns over impending tariffs on imports announced by the incoming administration. The University of Michigan’s survey indicated that one-year inflation expectations climbed to 3.3% in January, the highest since May, reflecting apprehensions about price increases due to trade policies.
The Past Week’s Notable US data points (with revisions)
The Upcoming Week’s notable US data points
