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

The U.S. economy boasted an impressive 256,000 nonfarm payrolls in December, a figure that shocked forecasters.

Payrolls: 256,000 jobs added in December vs. 153,000 expected, according to economists surveyed by FactSet. Unemployment rate: 4.1%, down from 4.2% in November. Revisions: October

The economy created 256,000 jobs in December, much stronger than what was predicted by Wall Street experts and more than 40,000 from the previous month, the Labor Department in its report released on Friday.

The US labor market ended 2024 on a high note, adding 256,000 jobs in December, above the forecast of 164,000. Unemployment unexpectedly dropped from 4.2% in November to 4.1% in December. The consensus expectation was that the rate would hold steady.

Take a look at how various assets are performing after the release of the latest nonfarm payrolls data:

Friday’s jobs report was “even more important” than normal as the market adjusts its assessment of the direction of the economy.

US employers likely added a healthy number of jobs in December and the unemployment rate was unchanged, showcasing a labor market that for another year defied expectations for a sharper slowdown.