Stocks and bonds declined in response to much better-than-expected job growth. This week's consumer inflation (CPI) report could further pressure yields.

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.

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

"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.

US stocks slid Friday as investors digested a better-than-expected jobs report that soured expectations of future rate cuts from the Federal Reserve. The Dow dropped by nearly 700 points, or 1.6%; while the S&P 500 fell by 1.

"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.

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,

The new jobs report is out, and hiring was much stronger than expected in December. The robust number is expected to further dampen the Federal Reserve's appetite for rate cuts. Details: ・The number: Employers added 256,