The better-than-expected data sent the blue-chip Dow Jones Industrial Average surging more than 700 points, or 1.7%, as investors felt renewed confidence that the Fed will cut rates multiple times this year. In recent trading, fed-fund futures showed the chances of more than one cut rising to 46%, from 35% on Tuesday, according to CME Group data.

Economists expect the Bureau of Labor Statistics to report a gain of 155,000 jobs, a step down from the surprising 227,000 increase in November.

The Labor Department estimates the economy added 256,000 jobs in December, indicating a resilient economy and labor market. For the Federal Reserve, which was already signaling a slowdown in rate cuts,

The Consumer Price Index rose 2.9 percent from a year earlier, but a measure of underlying inflation was more encouraging.

A new Federal Reserve Bank of Cleveland analysis shows the city's job market remains below pre-pandemic levels four years after COVID-19's onset.

Slowing inflation prompted futures traders to increase the odds that the Federal Reserve will trim the main interest rate more than once this year.

With the Federal Reserve touting a slower pace of easing, markets are expecting a longer pause. But Gov. Christopher Waller said the next interest rate reduction could come as soon as March because of inflation data.

The U.S. labor market added 256,000 jobs in December, a strong showing at the end of 2024, as the labor market revved up toward the end of the year.