U.S. stocks experienced a significant downturn on Friday, erasing all year-to-date gains for 2025, following the release of a robust December jobs report. The report showed that the U.S. economy added 256,000 jobs, surpassing expectations and lowering the unemployment rate to 4.1% from 4.2%. This strong job growth led investors to reduce their expectations for Federal Reserve interest rate cuts in 2025, with markets now anticipating only one 25-basis point cut, likely no earlier than June. The Dow Jones Industrial Average dropped nearly 700 points, closing at 41,938.45, a decline of 1.63%. The S&P 500 fell 1.54% to 5,827.04, and the Nasdaq Composite decreased by 1.63% to 19,161.63. The surge in bond yields, with the 10-year U.S. Treasury yield reaching its highest level since October 2023, contributed to the market's reaction. Analysts from major financial institutions, including Goldman Sachs, JP Morgan, and Bank of America, revised their forecasts, with some suggesting that the Fed's cutting cycle might be over due to persistent inflation and a resilient labor market.