Rise in US jobs may lead to reversal of trades hinging on Fed lowering rates

The Fed delivered a jumbo-sized 50 basis-point cut last month, temporarily vindicating that view. But the trajectory of rates is less certain after Friday’s labour market report, which showed the US economy creating over 100,000 more jobs than expected last month. That suggests there is less need for more large cuts this year and raises the prospects of a reversal in many of the trades that hinged on lower rates.