The FS Investments Market Minute for January 13, 2025, reports a 2% decline in the S&P 500, primarily affecting technology and rate-sensitive industries, due to a surge in yields capped by a strong jobs report. Interest rates increased, with the 10-year yield surpassing its 2024 high, and markets now expecting a single Fed rate cut in 2025. Crude oil prices hit a five-month high, while U.S. oil production reached historic levels, and gold saw modest gains. A robust U.S. employment report showed a significant rise in job additions and a decrease in the unemployment rate to 4.1%, highlighting potential underestimation of labor market strength.

A weekly recap of equities, fixed income, commodities, and macroeconomic analysis from the FS Investments research team.

To read the full market minute or to sign up for the weekly email, with charts and data, go to https://fsinvestments.com/marketminute