Junk Bond Rally Pauses as Strong Jobs Report Tempers Hopes for 2024 Rate Cuts
• Rally in junk bonds pauses on Friday after strong jobs report leads to questions about potential for significant 2024 rate cuts
• Junk bonds may be sniffing out market weakness ahead of stocks
• Investors were betting on Fed rate cuts starting as early as May 2023, but odds shifted after jobs report
• Recent optimism around potential 2024 rate cuts has helped risk assets like junk bonds
• Stocks indexes continue to narrow gap to record closes from 2 years ago