Markets ended the week higher after the closely watched employment report came in slightly better than expected.
One important question is: Is the market price for next year’s deep interest rate cuts realistic? Traders are pricing in a roughly 50% chance that the Fed will cut interest rates in March.
Stocks rose. All three major U.S. indexes rose about 0.4% on Friday. Tech stocks were the driving force behind the rally on Thursday.
Yields have increased. The yield on the benchmark 10-year U.S. Treasury note settled at 4.244% on Friday, up from 4.129% late Thursday and the biggest single-day increase since mid-October.
Oil prices rose on this day. However, both US and global crude oil futures fell for the seventh consecutive week.
Gold has fallen this week. Monthly gold futures ended below $2,000 on Friday, ending a three-game rally.
Japanese stocks fell. The yen was bought on expectations for the lifting of negative interest rates, the Nikkei Stock Average fell 1.7%, and Japanese government bonds were sold off for the second consecutive day. Stoxx Europe ended the week at its highest since February 2022.
Further insights related to employment reports: