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.

Yields for the 10-year Treasury shot up Friday to their highest level since 2023, putting pressure on stock valuations.

"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.

Rising Treasury yields are ratcheting up the anxiety for equity investors. Thursday’s stock-market closure offered only a brief reprieve from the mounting tension.

The Labor Department reported Friday that 265,000 jobs were added to the U.S. economy in December, which was roughly 100,000 more than expected. The unemployment rate also fell to 4.1%. CBS News contributor Javier David explains why investors see the better-than-expected jobs report as a bad thing.

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.

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