Gift Nifty has slipped more than 150 points. Asia is also witnessing a softening. There was a selloff in US stocks on Friday as better than expected jobs data dashed hopes of interest rate cuts in January. The S&P 500 wiped out all of its 2025 gains. The strong jobs report fueled new inflation fears, reinforcing speculation that the Federal Reserve may take a cautious approach in cutting interest rates this year.
Wall Street’s main indexes closed in the red for the second consecutive week. The Dow Jones Industrial Average fell 696.75 points, or 1.63%, to 41,938.45, the S&P 500 fell 91.21 points, or 1.54%, to 5,827.04 and the Nasdaq Composite dropped 317.25 points, or 1.63%, to 19,161.63.
US Non-Farm Payrolls
The figures stood at 2.55 lakh in December. The market was expecting Rs 1.55 lakh. This was the highest rise since March 2024. The US unemployment rate stood at 4.1% in December, compared to market expectations of 4.2%.
US bond yield
In early trading on Monday, US 10-year Treasuries rose 149 bps to 4.75 per cent, and 2-year Treasuries rose 270 bps to 4.37 per cent. The 30 year yield has crossed 5%.
dollar index
An unexpected rise in Treasury yields has strengthened the dollar. At present the dollar index is seen at the level of 109.66.
The path ahead is not easy?
The S&P500 earnings yield was 1% lower than the 10-year yield. The last time the S&P500 earnings yield was less than 1% was in 2002. Janus Henderson said the 10-year yield crossing 5% turned out to be worse than the market. There is a possibility of sudden selling in the stock market. Morgan Stanley said that the next 6 months are challenging for the market.
Asian market
Meanwhile, mixed business is being seen in Asian markets today. GIFT NIFTY is trading in the red. At the same time, Strait Times is showing a weakness of 0.44 percent. Taiwan’s market is trading at 22,516.42, down 2.20 percent. Whereas Hang Seng is seen falling by 1.29 percent at the level of 18,821.43. At the same time, a decline of 1.14 percent is being seen in Kospi. At the same time, Shanghai Composite is showing a decline of 0.45 percent at the level of 3,154.37.