Stock futures were pointing to further losses on Monday, suggesting the market still isn't over a blockbuster jobs report that has investors questioning if the Federal Reserve will lower interest rates at all this year.

Friday’s jobs report was “even more important” than normal as the market adjusts its assessment of the direction of the economy.

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.

"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.

Friday’s unexpectedly big increase in December nonfarm payrolls led to a diminished market-based likelihood for any rate cut by the Federal Reserve until September, based on one method of calculating expectations — and one big bank sees the risks tilting toward a rate hike.

The December jobs report showed a surprise surge in hiring and an unexpected drop in the unemployment rate. Taken together, the data strengthen the case for the Federal Reserve to maintain its current cautious stance toward lowering borrowing costs,

U.S. job growth unexpectedly accelerated in December while the unemployment rate fell to 4.1% as the labor market ended the year on a solid footing, reinforcing views that the Federal Reserve would keep interest rates unchanged this month.

The U.S. job market again defied an anticipated slowdown, with firms adding more than a quarter of a million jobs in the last full month of Joe Biden’s presidency and leaving Federal Reserve policymakers to puzzle over the need for more interest rate cuts in a strong economy.

Key Takeaways The odds of the Federal Reserve cutting its benchmark interest rate this year fell after a jobs report Friday showed hiring in December blew past expectations.Strong job growth means less pressure on the Fed to cut interest rates to save the economy and prevent layoffs.

The US economy defied expectations in December, adding 256,000 nonfarm payroll jobs, surpassing economists forecast of 164,000 and Novembers revised 212,000 increase. The unemployment rate dipped to 4.