Stocks and bonds declined in response to much better-than-expected job growth. This week's consumer inflation (CPI) report could further pressure yields.

A red-hot jobs report means that interest rate cuts aren't coming, and cuts could be next. Here's what strategists say is next for rates and stocks.

US stocks slid Friday as investors digested a better-than-expected jobs report that soured expectations of future rate cuts from the Federal Reserve. The Dow dropped by nearly 700 points, or 1.6%; while the S&P 500 fell by 1.

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.

The U.S. economy boasted an impressive 256,000 nonfarm payrolls in December, a figure that shocked forecasters.

"I think really the market is saying maybe no rate cuts in 2025, and that the 10-year could very easily break well above 5%," Jeremy Siegel said.

Betsey Stevenson, University of Michigan Public Policy & Economics Professor discusses the latest US jobs report numbers and whether or not the Federal Reserve needs to continue with supportive policy for the labor market.

Minutes suggest that Fed policymakers were already returning to the data-dependent mindset in the face of the incoming Trump administration. Now investors can only wait and hope.

The SP 500 plunged 1.6% on Friday after a stronger-than-expected December jobs report heightened fears of a prolonged Federal Reserve rate pause. The Dow Jones dropped 707 points (1.7%), while the NASDAQ Composite