Global Stocks Decline Ahead of US Jobs Data

Global stocks retreated as investors reacted to a stronger-than-expected US jobs report, which raised doubts about potential interest rate cuts this year. The S&P 500 and Nasdaq 100 futures declined by 0.2% and 0.3%, respectively, amidst concerns over rising inflation and elevated bond yields, with the 10-year Treasury yield reaching a 14-month high. The US economy added 256,000 jobs in December, surpassing estimates, while the unemployment rate dipped to 4.1%. Crude oil prices surged past $80 per barrel due to decreased Russian exports and increased heating demand amid cold weather. Meanwhile, European markets experienced losses, with the FTSE 100 down 0.86% and the STOXX 600 declining 0.7%. Analysts warn that the Federal Reserve's stance on interest rates will likely remain hawkish given the current economic indicators and inflationary pressures.