Good news is not always bad news for markets | Wilnesh News

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Employment surges in December
U.S. nonfarm payrolls data December surge of 256,000, That was up from 212,000 in November and the Dow Jones consensus forecast of 155,000. U.S. Bureau of Labor Statistics reported on Friday. The unemployment rate fell to 4.1% from 4.2% in November. Economists expect interest rates to remain unchanged in December.

The U.S. market will post losses in 2025
U.S. markets tumbled on Friday after a better-than-expected December jobs report. Major U.S. stock indexes are currently set to post losses in 2025. Stoke 600 The index fell 0.84%, and major stock markets closed lower.. Euro zone government bond yields climbed to multi-month highs.

Why Mehta had to ‘give in’ to Trump
Yuan Tuesday’s announcement that it would scrap third-party fact-checking was seen as an attempt to appease U.S. President-elect Donald Trump. In the words of a former Facebook vice president, this is why Meta had to “capitulate to Trump.” Separately, CEO Mark Zuckerberg accepted the ” “The Joe Rogan Experience” he lashed out apple Innovation efforts are lackluster.

Apple loses market share in China
apple Shares fell 2.4% following analyst Ming-Chi Kuo’s comments wrote On Friday, the company’s December iPhone shipments in China fell by about 10%-12% year-on-year, while overall smartphone shipments were flat. Additionally, Kuo said there is “no evidence” that Apple Intelligence is driving hardware upgrades or service revenue.

TikTok could be banned in the US this week
The U.S. Supreme Court heard oral arguments Friday in a case involving TikTok’s future in the United States. The judges seemed generally unconvinced by TikTok’s main argument that banning it violated the free speech rights of millions of users in the United States, meaning the app could disappear from app stores as early as this week.

(PRO) Inflation report and bank earnings this week
The US consumer price index for December was released on Wednesday. It will indicate whether inflationary pressures continue to weigh on the economy and markets, especially after December’s unexpectedly high nonfarm payrolls data. Large banks such as JPMorgan Chase, Goldman Sachs and Morgan Stanley Earnings are reported in the second half of the week.

There were 100,000 more jobs added in December than the Dow Jones consensus estimate.

Investors are concerned that the Fed may remain hawkish in response to the hot labor market. The market’s implied probability of an interest rate cut this year According to the employment report, this proportion rose to 68.5% after the employment report was released. CME’s FedWatch Indicators.

Bond yields, which have already risen in recent weeks, rose further following the jobs report. this 10-Year Treasury Bond Yield It hit the highest level since November 2023.

It’s no surprise that the market sold off quickly after the jobs report was released. this S&P 500 Index Down 1.54% Dow Jones Industrial Average Down 1.63% Nasdaq Index down 1.63%. All major indexes are in negative territory in 2025.

As the old saying goes, good news is bad news for investors.

But we should remember that things are different now than at the peak of inflation.

The Fed may be less worried about a strong labor market this time around. On the contrary, strong job growth may reassure the Federal Reserve, as concerns about employment rates were one of the reasons why the Fed decided to cut interest rates by a sharp 50 basis points in September.

“You’ll never hear me complain about the 250,000 jobs we created,” Chicago Fed President Austan Goolsbee said on CNBC’s “Squawk on the Street.” Ilby also noted that inflation over the past six months has been around 1.9%, slightly below the Fed’s target.

In times of lower inflation, strong employment numbers are a sign of a resilient economy.

Adam Turnquist, technical strategist at LPL Financial, said economic growth ultimately “means better profit potential, lower recession risk, which is really going to determine long-term returns versus the sell-off in today’s market.”

In other words, good news can only be good news if investors look beyond the immediate horizon.

—CNBC’s Jeff Cox, Michael Santoli, Pia Singh and Sean Conlon contributed to this report.