From Financial Modeling Prep: 2025-01-08 02:44:06

U.S. stock markets fell on Tuesday as fears of persistent inflation grew due to stronger economic data, causing major indices to reverse course.

Key Economic Data:
– Job openings unexpectedly rose in November, indicating labor market strength.
– Services sector activity accelerated in December, with input prices at a two-year high.

Market Reaction:
– 10-year Treasury yields hit 4.699%, highest since April.
– Traders delay rate cut expectations to June 2025 due to economic data.

Inflation and Tariffs:
– Potential tariffs could complicate Fed’s inflation fight.
– Fed may pause rate cuts due to growth and inflation pressures.

Sector Analysis:
– Growth and consumer sectors vulnerable to higher borrowing costs.
– Financial sector may benefit from rising Treasury yields.

Investment Outlook:
– Fed likely to maintain cautious monetary policy approach.
– Defensive sectors and high-dividend stocks recommended for investors.



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