U.S. Job Surge Sends Ripples Through Markets

The U.S. economy outperformed expectations in job creation for January, complicating Federal Reserve rate cut plans. Treasury yields and dollar value rose while stock markets remained steady. European markets showed AI disruption concerns, and commodities saw mixed performances, with U.S. crude and Brent oil prices rising.

The U.S. economy showcased unexpected strength in January, with 130,000 new jobs far surpassing the anticipated 70,000, leaving policymakers to reconsider rate cuts. Treasury yields saw an uptick, as did the dollar, contrasting with stocks which stayed nearly flat.

Despite the economic boost, the unemployment rate decreased marginally to 4.3%. Eric Merlis from Citizens highlighted that stable unemployment without wage acceleration aligns with Federal Reserve goals, affecting the odds of a March rate cut.

Globally, European markets faced artificial intelligence disruption fears, while commodities like U.S. crude and Brent oil witnessed price increases. The dollar strengthened against most currencies, except the yen, which gained post-Japan's political landscape shift.

(With inputs from agencies.)