U.S. stock markets showed varied performance ahead of and following key economic data and anticipated legal decisions. Investors assessed the December jobs report, which indicated fewer job additions than some economists projected, and continued to monitor an awaited Supreme Court ruling on presidential tariffs. Separately, presidential directives concerning mortgage bonds and international energy infrastructure were also noted.
Market Performance Overview
On Thursday night, stock futures exhibited minimal movement, with Dow Jones Industrial Average futures gaining 7 points, S&P 500 futures remaining near flat, and Nasdaq 100 futures experiencing a marginal decline. During regular trading on Thursday, the Dow added approximately 270 points (0.6%), while the S&P 500 concluded marginally higher. The Nasdaq Composite closed 0.4% lower, with declines observed in technology stocks including Nvidia, Palantir, and Broadcom.
By Friday, U.S. stock indexes recorded gains. The S&P 500 increased by approximately 0.4%, the Nasdaq Composite by 0.3%, and the Dow Jones Industrial Average by 0.1%. All three major indexes were positioned for a weekly increase, with the S&P 500 up about 0.9% week-to-date, the Dow up approximately 1.8%, and the Nasdaq up 1.1% over the same period.
Economic Data: December Jobs Report
The December jobs report, released Friday morning, indicated that the U.S. economy added 50,000 nonfarm payrolls. This figure fell short of some economist expectations, with a Dow Jones survey projecting an increase of 73,000 positions and other economists anticipating 70,000. The unemployment rate decreased to 4.4% in December, from 4.6% in November. This data reinforced expectations that the Federal Reserve may maintain current interest rates.
Supreme Court and Trade Tariffs
Markets continued to monitor a potential U.S. Supreme Court ruling concerning the legality of tariffs imposed by a previous administration. The Court designated Friday as an opinion day, providing the first opportunity for a decision on whether a law intended for national emergencies was properly invoked for global duties. A resolution on tariffs could influence trade policy, the nation's fiscal position, and potentially encourage companies to restock, thereby stimulating the manufacturing cycle, according to Wells Fargo chief equity strategist Ohsung Kwon. The outcome could also significantly impact U.S. economic strategy and international trade if the levies are deemed unlawful.
Presidential Initiatives
Separately, the President issued directives on both domestic and foreign policy fronts. Domestically, the President directed Freddie Mac and Fannie Mae to purchase $200 billion in mortgage-backed securities. This initiative aims to reduce mortgage rates and address housing affordability, though specific details of the plan remain to be fully clarified.
In foreign policy, the President announced the cancellation of a second wave of attacks in Venezuela. This decision was attributed to cooperation concerning U.S. plans for rebuilding Venezuela's energy infrastructure. The White House subsequently scheduled a meeting with global oil companies to discuss Venezuela's oil reserves.