DJIA Index. Shake it. Bake it. Booty Quake It. Roll It Around
Markets were shaked this Friday after the December employment report came in much stronger than expected.
The economy added 256,000 jobs in December, well above the average economist estimate of 155,000. The unemployment rate unexpectedly declined to 4.1% from 4.2% in November.
The Nasdaq 100 immediately dropped by about 1%, while the 10-year US Treasury yield spiked nearly 10 basis points to 4.785%, representing its highest level since October 2023.
The strong payroll report further strengthened the case for no more interest-rate cuts from the Federal Reserve, at least for 2025.
The moves in stocks and bonds are a continuation of what's been seen in recent weeks: Following a period of euphoric optimism, investors have started to anticipate higher inflation stemming from President Donald Trump's proposed trade and fiscal policies. If the upward move in bond yields continues, Americans will feel it in a big way.
The CME FedWatch Tool indicates that markets now expect just one 25-basis point interest rate cut this year, down from expectations late last year of as many as three. The chances that there will be no rate cuts in 2025 more than doubled Friday morning to 28%.
Dollar index
DXY rockets to the moon, while the 10-yr 
TNX strongly above 4.5%.
Endogenously, the market has been preparing for such a turbulence, as it's been discussed in earlier posted idea "Strategy 2025. BTC Airless Scenario Below $100'000 Choking Point".
I remember, the financial market has had a tough weeks in last December, 2024, but it might also be in store for a tough year in 2025, as I noted those time.
The market was on track for its worst weeks over years after the Federal Reserve gave a hawkish forecast for interest rate cuts in 2025. But looking at the market's internals, it was clear that damage had been inflicted well before the Fed's Wednesday meeting — and the signal is a historic indicator of tough times ahead.
Dow Jones Futures has ended 6th straight RED WEEK in a row - the quite rare event.
The historical back test analysis over last 25 years indicates, it could lead to further (at least) 10 percent decline for Top-30 stock club.
The major technical graph indicates on a bearish trend in development, where major 200-week SMA support is nearly 35'700 points in this time.
The economy added 256,000 jobs in December, well above the average economist estimate of 155,000. The unemployment rate unexpectedly declined to 4.1% from 4.2% in November.
The Nasdaq 100 immediately dropped by about 1%, while the 10-year US Treasury yield spiked nearly 10 basis points to 4.785%, representing its highest level since October 2023.
The strong payroll report further strengthened the case for no more interest-rate cuts from the Federal Reserve, at least for 2025.
The moves in stocks and bonds are a continuation of what's been seen in recent weeks: Following a period of euphoric optimism, investors have started to anticipate higher inflation stemming from President Donald Trump's proposed trade and fiscal policies. If the upward move in bond yields continues, Americans will feel it in a big way.
The CME FedWatch Tool indicates that markets now expect just one 25-basis point interest rate cut this year, down from expectations late last year of as many as three. The chances that there will be no rate cuts in 2025 more than doubled Friday morning to 28%.
Dollar index
DXY rockets to the moon, while the 10-yr TNX strongly above 4.5%.Endogenously, the market has been preparing for such a turbulence, as it's been discussed in earlier posted idea "Strategy 2025. BTC Airless Scenario Below $100'000 Choking Point".
I remember, the financial market has had a tough weeks in last December, 2024, but it might also be in store for a tough year in 2025, as I noted those time.
The market was on track for its worst weeks over years after the Federal Reserve gave a hawkish forecast for interest rate cuts in 2025. But looking at the market's internals, it was clear that damage had been inflicted well before the Fed's Wednesday meeting — and the signal is a historic indicator of tough times ahead.
Dow Jones Futures has ended 6th straight RED WEEK in a row - the quite rare event.
The historical back test analysis over last 25 years indicates, it could lead to further (at least) 10 percent decline for Top-30 stock club.
The major technical graph indicates on a bearish trend in development, where major 200-week SMA support is nearly 35'700 points in this time.
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