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

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

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:

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.