"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.

When the December nonfarm payrolls report hit the tape, there was no question which way stocks would go at Friday's opening bell.

US stocks fell Friday after the December jobs report showed another month of strong employment, complicating the Federal Reserve’s rate-cutting campaign.

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,

"Markets tried to front-run the Fed on the level of interest rates and are now paying the price," Jamie Cox of Harris Financial Group said.

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.

A hot December jobs report, combined with a murky inflation outlook for 2025, has some economists debating if the Federal Reserve may need to hike interest rates again.