TechFlow news — On January 13, according to Jinshi News, following strong U.S. employment data, interest rate futures indicate a significant downward revision in market expectations for Fed rate cuts in 2025. The expected easing by year-end is now only 24.26 basis points, sharply lower than the previous 43 basis points before the jobs data release. Aditya Bhave, Deputy Chief Economist at Bank of America, said that if the core PCE annual rate exceeds 3% and inflation expectations become unanchored, the market could shift toward pricing in rate hikes.
Against the backdrop of rising inflation and borrowing cost expectations, the U.S. Treasury market faced a sell-off, pushing up yields on the 10-year Treasury note. The dollar index rose accordingly, reaching a 26-month high. Global equities came under broad pressure, with European stocks falling for a second consecutive day and all three major U.S. stock index futures declining, among which Nasdaq futures dropped more than 1%.
