Market Highlights

Signs the US jobs market is sluggish, but not quickly deteriorating saw traders refraining from boosting bets on near-term Federal Reserve rate cuts, with stocks falling and bonds wavering. A noisy reading reflecting some of the impacts of the longest government shutdown in US history was received by traders with caution. The S&P 500 fell for a third straight day. Treasury yields edged mildly down as swaps implied only 20% odds of a January Fed cut. A reduction is fully priced in by mid-2026. Nonfarm payrolls increased 64,000 in November after declining 105,000 in October amid a contraction in federal employment. The jobless rate rose to 4.6% last month, continuing its upward climb as many out-of-work Americans struggled to land new jobs.