Stock futures were pointing to further losses on Monday, suggesting the market still isn't over a blockbuster jobs report that has investors questioning if the Federal Reserve will lower interest rates at all this year.

"Inflation is stuck above target and risks are skewed to the upside. Economic activity is robust. We see little reason for additional easing."

If year-on-year total and core CPI consumer inflation rates accelerate, financial markets risk turbulence as investors’ 2025 interest rate cut expectations fall further.

Key Takeaways The odds of the Federal Reserve cutting its benchmark interest rate this year fell after a jobs report Friday showed hiring in December blew past expectations.Strong job growth means less pressure on the Fed to cut interest rates to save the economy and prevent layoffs.

The surprising 256,000 increase in new jobs in December and a declining unemployment rate is good news, but the latest employment reports masks recent softness in the labor market. The increase in new jobs in December, for example, was centered on just four industries: Health care, government, retail and leisure and hospitality.

Before the strong December jobs report was released, the odds were already low for an interest rate cut in the next Federal Reserve decision on January 29.

Welcome to TOPLive’s blog coverage of the US employment report for December. As we contemplate the year ahead — and the return of Donald Trump to the White House — we’ll take a final look at the 2024 job market. Join us at 8:15 a.m. New York time, 15 minutes before the numbers come out, for news, analysis and market reaction.

The Federal Reserve has been "less focused on the job market recently," and today’s better-than-expected employment report "gives them more reason to put their attention elsewhere," said Ali Jaffery,

US job growth surged in December, surpassing expectations. The services sector drove gains, but wage growth slightly slowed. Click for more on the December jobs report.

Employers added 256,000 jobs in December despite uncertainty over President-elect Donald Trump's policies. Unemployment dipped to 4.1%

Friday’s unexpectedly big increase in December nonfarm payrolls led to a diminished market-based likelihood for any rate cut by the Federal Reserve until September, based on one method of calculating expectations — and one big bank sees the risks tilting toward a rate hike.