In December, the United States created 256,000 jobs, significantly exceeding Goldman Sachs' expectations, which foresaw a creation of around 200,000 jobs. This substantial job creation caused turbulence in financial markets, leading to a drop in major indices (Dow Jones down 1.2%, Nasdaq Composite down 1.5%) and a spike in Treasury bond yields to 4.79%, the highest since November 2023. The unemployment rate decreased to 4.1%, while wages rose by 0.3% month-on-month and 3.9% year-on-year. Investors now expect the Federal Reserve to take a more cautious approach to monetary easing this year$NASDAQ 100(NDX)$
The report suggests that the Fed is likely to maintain its current policy stance for several months. Employment data was keenly anticipated, especially given President-elect Donald Trump's economic plans, including tax cuts, import tariffs, and immigration restrictions. Additionally, the consumer confidence index slightly fell in January, and inflation expectations for the next year increased to 3.3%, surpassing market forecasts.
Modify on 2025-01-11 15:11
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