Investing.com -- US employers likely eased back on hiring in December, closing out a year of steady but slowing job growth that economists predict will extend into 2025.
This would bring the average monthly job gain for 2024 to around 180,000 – a slowdown from the past three years but still indicative of underlying labor market strength. Such a print would point to a stable but not overheated US economy and underpin expectations for stock market gains in 2025. Moreover, investors will review minutes from the Fed’s December meeting on Wednesday, seeking insights into how divided officials were over the recent quarter-point rate reduction.
With Treasury real yields and the dollar remaining elevated – even after 100 basis points of Fed rate cuts – Citi’s team believes the economy “should continue to cool until the Fed resumes cutting policy rates.”“Survey data suggest the labor market is improving, and we expect additional strength in the retail and construction sectors,” strategists led by Jeremy Schwartz noted.