Jan 10 (Reuters) - The economically sensitive Russell

2000 small-cap index was on course to plunge into a correction

on Friday, falling more than 10% from its 2021 highs as

investors pared back optimism on rate cuts by the Federal

Reserve following a robust jobs report.

The benchmark index fell 1.9% to 2197.7 points, down

more than 10% from its all-time closing high of 2442.74 points

hit in November 2021.

U.S. equities sold off after data showed job growth

unexpectedly accelerated in December, while the unemployment

rate fell to 4.1% as the labor market ended the year on a solid

footing.

The blowout report led to traders paring back their rate

expectations for 2025, with most seeing the Fed waiting until at

least June to reduce its policy rate, compared to chances of a

cut as early as May and about a 50% chance of a second rate cut

before the end of the year prior to the data.