Morning Bid: Jobs news, AI blues and falling oil

Labor Market Insights - A rare Tuesday U.S. payrolls report is set to focus market attention back on the labor market, with updates for both October and November payrolls and an unemployment rate for November [1][2] - The consensus forecast anticipates a hit to October payrolls due to a government shutdown, followed by a recovery in November, with the unemployment rate expected to remain steady at 4.4% [2][3] Market Reactions - Long-dated Treasuries are under pressure, with the two-to-30-year yield curve steepening to its widest since the April tariff shock [4] - Wall Street stocks experienced a down day, with significant sector rotation and AI-related stocks continuing to decline, including Broadcom and Oracle, which hit their lowest levels since June [5] Global Economic Factors - Oil prices have dropped to their lowest since May, influenced by signs of movement in Ukraine peace talks, contributing to a year-on-year crude price decrease of over 21% [6] - European defense stocks fell following U.S. offers for NATO-style security guarantees for Kyiv, with notable declines in companies like Rheinmetall, Hensoldt, and Leonardo [7]