Markets on Edge: Strong Jobs, Fewer Rate Cuts & What’s Next

A wrap-up of this week’s key market moves and a heads-up on the big events to watch next week.

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Market Mastery Digest
January 13, 2025

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Inflation Data and Bank Earnings Set the Stage for Next Week

Hey there!

As we wrap up the second week of 2025, it’s been an eventful one with strong job growth, inflation still lurking in the shadows, and a little market turbulence to keep things interesting.

Nvidia made headlines with a brief new high before dipping, and the Fed’s latest comments reminded us all that while rate cuts might still happen, they’ll probably be fewer than some traders had hoped.

Classic start-of-the-year jitters, right?

But don’t relax just yet — next week is shaping up to be just as exciting.

We’re giving you a heads-up on some key events to watch.

Plenty of action ahead, and we’ll tell you what it all means for your next trade.

Let’s dive in!

Before we jump into what’s coming next week, let’s take a quick look back.

The US services sector grew faster than expected in December, with input prices hitting a near two-year high.

Inflation concerns remain on the table as the Fed keeps a close eye on economic data.

November's JOLTS report showed job openings holding steady at 8.1 million, while hiring eased slightly.

Labor demand remains resilient despite ongoing Fed rate hikes.

Nvidia shares briefly hit a record high before retreating as investors took profits.

The tech giant remains a key player to watch in 2025.

According to ADP, private companies added 122,000 jobs in December — below forecasts.

This signals a cooling in the labor market heading into 2025.

The Fed’s latest meeting minutes reinforced a hawkish stance, with fewer rate cuts planned in the near future.

December saw a healthy surge in job growth, with unemployment edging down and wage increases holding steady.

While the labor market showed resilience, the stock market didn’t react positively — futures dipped, and Treasury yields jumped as traders adjusted expectations for Fed policy.

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Buckle up — it’s going to be another action-packed week!

  • Inflation Check: PPI and CPI Reports
    These are key inflation gauges that could influence the Fed’s rate decision.

    If inflation shows signs of cooling, markets might cheer the possibility of rate stability.

  • Job Market Pulse: Initial Jobless Claims
    The weekly initial jobless claims report will provide fresh insight into labor market conditions.

  • Bank Earnings Kick Off
    Major banks like JPMorgan Chase, Goldman Sachs, Bank of America and Wells Fargo will report earnings, offering clues about the health of the financial sector and the broader economy.

With another action-packed week ahead, it’s all about staying ahead of the game.

Markets can be unpredictable, but the well-prepared trader always has an edge.

Whether it’s inflation reports or earnings results, keep your eyes open for opportunities.

Stay focused, stay prepared, and as always — happy trading!