The jobs report shocked markets as strong job gains and lower unemployment fueled fears of delayed Fed rate cuts. Stocks tumbled, with the Dow dropping 700 points.

The S&P 500 faced resistance on Wednesday, inching up just 0.2% as investors awaited the pivotal jobs report. Treasury yields showed mixed movements, with the 10-year rising to its highest since November.

Tech stocks are rallying as 2025 begins, driven by economic optimism and potential policy shifts. However, investors remain cautious amid inflation concerns and evolving Federal Reserve strategies.

The Santa Claus rally started strong but now faces challenges, with tech struggles, yield volatility, and Fed policy debates fueling uncertainty. As 2025 nears, this period could shape market trends, from renewed rallies to potential sell-offs.

The U.S. economy and stock market are currently navigating through a complex landscape influenced by both domestic factors and international issues. On the domestic front, U.S. consumer confidence has dropped unexpectedly, with a notable decrease in the Conference Board’s consumer sentiment index, reflecting growing concerns about the economy.