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Surprising December jobs growth is denting chances of a first-half Fed rate cut - MarketWatch

1. US nonfarm payrolls for December were unexpectedly strong, suggesting economic growth. 2. Robust job growth indicates increased inflation risks, influencing Federal Reserve policy. 3. Market now sees reduced chances for rate cuts until September 2024. 4. A major bank predicts potential rate hikes due to strong labor report.

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FAQ

Why Bearish?

Stronger economic indicators may lead to rising interest rates, typically negative for banks like BAC.

How important is it?

Jobs data impacts interest rates, affecting BAC's lending and profitability outlook.

Why Short Term?

Interest rate adjustments usually affect stock prices quickly, potentially impacting BAC in the near term.

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