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Recent job numbers indicate a modest increase in non-farm payroll employment, which rose by 143,000 in January, below some expectations but still reflective of ongoing economic stability. The unemployment rate dipped to 4%, signaling a healthy job market. However, the bond market demonstrates a contrasting perspective, bracing for higher interest rates without expecting cuts from the Federal Reserve.
The 10-year Treasury note is inching closer to a 5% yield, raising concerns that the FED will maintain higher rates. The economic indicators hint at robust conditions that don't align with a narrative of impending rate cuts, despite a pervasive sense of apprehension in some financial circles.
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