Pre-Market Report – Monday 13 January: SPI down 71 | US markets drop on jobs and bond yields

ASX set to drop. SPI futures down 71 points or 0.86%. Stocks in the US broadly fell on Friday night after non-farm payrolls data implied the labour market is in better shape than expected. A classic case of good news is bad news, it reinforced fears from Tuesday night that there will only be one Fed rate cut this year, down from two indicated by the Fed last month. Dow Jones down 697 points, closing near the low. Nasdaq down 1.63% and the S&P 500 down 1.54%. The Nasdaq fell 2.35% for the week while the ASX 200 gained 0.53%. A rare week of outperformance for our market. December non-farm payrolls showed 256k jobs in the US were added, well above expectations of a 212k rise while the unemployment rate fell to 4.1% (no change was expected). Concerns the strong labour market will keep inflation elevated saw the chance of two rate cuts this year fall. Bond yields had a huge jump. US10Y up 7bp and the 2Y up 12bp. Why not sign up for a free trial? Get access to expert market insights and manage your investments with confidence. Ready to invest in yourself? Join the Marcus Today community.