A red-hot jobs report means that interest rate cuts aren't coming, and a hike could be next. Here's what strategists say is next for rates and stocks.

"Inflation is stuck above target and risks are skewed to the upside. Economic activity is robust. We see little reason for additional easing."

If year-on-year total and core CPI consumer inflation rates accelerate, financial markets risk turbulence as investors’ 2025 interest rate cut expectations fall further.

Eric Diton, president and managing director of The Wealth Alliance, says Friday's blowout jobs report may indicate "the Fed will probably not cut rates anywhere near where the market thought it would just a few months

Bank of America sees no rate cuts in 2025 after December's strong jobs report, and Goldman Sachs whittles down its rate-cut view. Read more here.

"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.

Due to the stronger-than-expected jobs report, Bank of America economists revised the Fed outlook for this year: “We no longer expect any additional rate cuts,” economists wrote in a report on Monday. "Inflation is stuck above target, with risks skewed to the upside, activity is strong, and the labor market now appears to have stabilized."

Risk assets trade weak as investment banks pare back Fed rate cuts in the wake of Friday's hotter-than-expected U.S. jobs report.

Minutes suggest that Fed policymakers were already returning to the data-dependent mindset in the face of the incoming Trump administration. Now investors can only wait and hope.

Bank of America (BofA) has revised its forecast, stating the Federal Reserves rate-cutting cycle has concluded. This shift follows a stronger-than-expected December jobs report, which revealed a substantial