- Ahead of Friday's jobs report, Treasury yields increased and tech stocks decreased as investors attempted to determine how quickly and significantly the Federal Reserve may lower interest rates.
- As investors booked profits on last year's winning tech stocks, the Nasdaq 100 fell 0.5%, marking the longest losing streak since December 2022. Apple Inc. fell following its second downgrade this week as Piper Sandler raised concerns about iPhone inventory levels. The S&P 500 ended the session 0.3% lower after fluctuating between gains and losses.
- Following data showing US companies ramped up hiring in December and jobless claims came in below estimates, ten-year Treasuries flagged with yields hitting 4%. Since the beginning of the year, the benchmark rate for everything from mortgages to loans has added about 12 basis points. Following the data, swaps traders reduced their bets on Fed easing.
- To determine whether central banks have flexibility to start decreasing interest rates, traders will next look to the monthly US jobs report on Friday in addition to European inflation data.
- With the labour market continuing strong and the Fed's December meeting minutes suggesting that rates could stay at restrictive levels "for some time," bets on a March rate cut in the US have become less likely.
