A sharp selloff in the world’s largest bond market sent shockwaves through the U.S. financial markets this week, leaving investors to ponder if that choppiness will persist throughout the new year.

Good morning. Wall Street bonuses will jump by 10% or more. Catastrophic weather drives insured losses higher. And a new side hustle is on the rise: Making job referrals for strangers. Listen to the day’s top stories.

U.S. stocks sold off on Friday, with the S&P 500 erasing its 2025 gains, after an upbeat jobs report stoked fresh inflation fears, reinforcing bets that the Federal Reserve will be cautious in cutting interest rates this year.

The financial services sector is facing disruption as AI technologies threaten to displace a considerable share of its workforce.

The Cboe Volatility Index (VIX) - widely seen as Wall Street's fear and volatility gauge - soared about 9% on Friday to a three-week-high, after the latest job market update led to a big recalibration in Federal Reserve rate cut expectations.