Wall Street faced heavy selling pressure in its first trading session after former President Jimmy Carter’s funeral, as a series of economic developments rattled interest rate and energy markets, sparking heightened risk aversion among investors.
The U.S. economy added 256,000 jobs in December, far exceeding expectations of a slowdown to 160,000. The unemployment rate dipped to 4.1%, defying forecasts that had anticipated it to remain at 4.2%.
This red-hot labor market data spurred traders to recalibrate their interest-rate projections. According to the CME FedWatch Tool, expectations for a rate cut have been postponed even further, with markets now fully pricing in a reduction only by September 2025.
Adding to market turmoil, oil prices — as tracked by the United States Oil Fund (NYSE:USO) — surged more than 3% to $76 per barrel after the Biden administration imposed stricter sanctions on Russian oil exports. These measures targeted major Russian oil companies, shadow fleet tankers and opaque trading networks, intensifying pressure on Moscow’s energy revenues.
Rising interest rate concerns and inflation uncertainty weighed heavily on equities. The latest University of Michigan consumer survey showed five-year inflation expectations rise to 3.3%, the highest since June 2008.
The S&P …Full story available on Benzinga.com
Wall Street Tumbles On Blowout Payrolls, Oil Rallies To $76, US Dollar Hits 26-Month Highs: What’s Driving Markets Friday?
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