U.S. stocks experienced a modest rise following a mixed report on the job market. The *S&P 500* increased by 0.2% in early trading on Friday, approaching the all-time high it achieved earlier this week. The *Dow Jones Industrial Average* gained 147 points, or 0.3%, while the *Nasdaq* composite remained unchanged. Treasury yields showed varied movements in the bond market after the *Labor Department* indicated that employers hired fewer workers in December than anticipated, despite an improvement in the unemployment rate.
In premarket trading, Wall Street showed signs of small gains, influenced by the *Labor Department’s* impending release of the latest employment data. Futures for the *S&P 500* and the *Dow Jones Industrial Average* rose by approximately 0.1%, while *Nasdaq* futures climbed by 0.2%. The homebuilder sector continued its upward trajectory, albeit at a slower pace than the previous day. President *Donald Trump* announced plans for the federal government to purchase *$200 billion* in mortgage bonds, aiming to lower mortgage rates amid rising home prices that have sidelined many potential buyers. Stocks of major builders such as *KB Home*, *D.R. Horton*, and *Lennar Corp.* increased between 1% and 2%, following gains of about 5% the previous day.
In contrast, *General Motors* faced a nearly 2% decline in premarket trading. The automaker reported it would incur close to a *$6 billion* loss in the fourth quarter due to sluggish electric vehicle sales. This announcement follows a previous disclosure in October of a *$1.6 billion* charge for the same issue.
Investors are closely monitoring the upcoming job report for December, which could significantly impact the *Federal Reserve’s* interest rate decisions. The Fed had already reduced its benchmark rate three times by the end of 2023, as concerns about a softening labor market grew, even as inflation remained above the central bank’s target of 2%. The December report marks the first clear labor market data in three months, as the government did not issue a report in October due to a shutdown, and November’s data was distorted by the same event.
If December’s job figures are unexpectedly weak, it could bolster the case for another rate cut at the Fed’s upcoming meeting scheduled for January 27-28. On the same day, the *Supreme Court* is anticipated to deliver a ruling regarding Trump’s extensive “Liberation Day” tariffs, which may influence market sentiment positively.
In Europe, midday trading saw *Britain’s FTSE 100* rise by 0.6%, with the *CAC 40* in Paris increasing by 0.9% and Germany’s *DAX* up by 0.4%. Meanwhile, in Asia, *Tokyo’s Nikkei 225* surged by 1.6% to reach 51,939.89, driven by a 10.6% jump in shares of *Fast Retailing*, the firm behind *Uniqlo*, which reported a 34% increase in quarterly operating profit. The company also revised its full-year forecasts upward.
*Hong Kong’s Hang Seng* index rose by 0.3% to 26,231.79, while the *Shanghai Composite* climbed 0.9% to 4,120.43, buoyed by data showing China’s inflation rate increased in December, marking its fastest pace in nearly three years. This uptick suggests improved demand, typically associated with rising prices. Shares of the Chinese artificial intelligence startup *MiniMax*, which debuted on the *Hong Kong Stock Exchange*, surged 109%.
In Australia, the *S&P/ASX 200* saw a slight decline of less than 0.1% to 8,717.80, with *Rio Tinto* shares dropping over 6.2% after the mining group confirmed preliminary merger talks with *Glencore*, potentially creating the largest mining company globally. In South Korea, the *Kospi* gained 0.8% to 4,586.32, while *Taiwan’s Taiex* dipped 0.2% and India’s *Sensex* fell by 0.7%.
In energy trading, oil prices increased after a volatile week, with benchmark U.S. crude climbing 41 cents to *$58.17* per barrel. Meanwhile, *Brent crude*, the international standard, rose by 44 cents to *$62.43*. Supply concerns continue, particularly in light of the U.S. asserting control over Venezuelan oil resources, having seized two more oil tankers this week, including one flying a Russian flag that allegedly evaded sanctions.
