It's early but US stocks look to temper a four-day winning streak to cap off the holiday-shortened week. S&P 500 futures are down 19 points shortly ahead of the open.
The strong non-farm payrolls report boosted the odds of a 75 bps hike at the end of the month to a near-certainty and pushed up the terminal rate just north of 3.5%. So while strong jobs diminishes the chance of a US recession, it means the Fed may have to put a tighter chokehold on the economy.
In the bigger picture, I don't think this report lingers for long in the market. There are some animal spirits brewing and the report about $220 billion in pulled-forward infrastructure stimulus in China this week is the most-important news.
Technically, the S&P 500 needs to get above 3945 to get any real momentum.
