Navigating the US Economy: From Soft Landing to Uncertain Runway

The U.S. jobs market exceeded expectations in November, with nonfarm payrolls rising by 199,000 and the unemployment rate dropping to 3.7%. Average hourly earnings also increased more than anticipated. Inflation expectations among consumers have plunged, with the University of Michigan consumer sentiment survey showing a significant drop in one-year inflation rate expectations. This, along with a strong jobs report, has boosted market optimism for a "soft landing" scenario. Additionally, China's consumer price index fell sharply in November, while producer prices also dropped. Investors will closely watch upcoming inflation reports and the Federal Reserve's final meeting of the year for further insights into the economic outlook.