10.01.25 - Hot job report

As revealed by this afternoon's data, job growth in the US during December was significantly stronger than anticipated. Non-farm payrolls surged by 256’000 for the month, up from 212’000 in November and way above of the 155’000 forecasted. As a consequence, the unemployment rate came down to 4.1% (4.2% expected). The latest US job data released this afternoon came much better . The 10-year Treasury yield spiked to highest level since late 2023.

Markets: as a first reaction, interest rates and US dollar up. Stocks, cryptos, gold all down with tech and small & mid cap stocks suffering the most while energy and material sectors outperform with rising commodity prices.

My View: The year begins on a tense note, mirroring the last days on financial markets in 2024. As a consequence of rising uncertainties, investors eye on any hint by any economic release. Elevated volatility is likely to persist in the near term, keeping markets on a knife's edge until a clearer trend emerges and the pendulum begins to calm.
I continue to wait on the side-line adding more risks to my portfolio. However, I am ready for buying opportunities which could be around the corner. Better job data should actually be taken as good news regarding the overall US economy. However, investors ‘fear’ less rate cuts by the Fed than anticipated before.

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