Traders raised their expectations for a pause in interest rate cuts in January after the report. They still project an easing of about 54 basis points in 2026, according to data collected by LSEG.“It is now difficult to argue that the labor market is collapsing and is in dire need of monetary support,” said Seema Shah, Chief Global Strategist, Principal Asset Management.
“However, the picture remains far from clear: wage growth has been below expectations, and downward revisions from previous months have pushed the three-month moving average into negative territory.”
All major S&P sectors traded in the green, with the utilities index leading the way, up 1.5%. TD Cowen started covering several utilities, including Constellation Energy and Entergy. The shares of those companies rose 4% and 2% respectively.
Meanwhile, the US Supreme Court is expected to rule on the legality of Trump’s far-reaching tariffs as early as Friday. Traders expect greater volatility in the financial markets if the court strikes them down. Judges have previously expressed skepticism about Trump’s authority to impose the tariffs. Cutting rates could impact government revenues, but Treasury Secretary Scott Bessent said Thursday he was more concerned about Trump’s loss of influence than revenues.
At 9:41 a.m. ET, the Dow Jones Industrial Average rose 153.49 points, or 0.31%, to 49,419.60, the S&P 500 gained 25.42 points, or 0.37%, to 6,946.88 and the Nasdaq Composite gained 88.49 points, or 0.38%, to 23,568.50.
All three indexes are poised for weekly gains in the first full trading week of 2026, with the Dow Jones on track for its biggest weekly gain since the last week of November.
Intel gained 2.6% after Trump said he had a “great meeting” with the chipmaker’s CEO, Lip-Bu Tan.
Shares of General Motors fell 2.2% after the automaker said Thursday that a $6 billion charge would be needed to unwind some investments in electric vehicles.
Shares of mortgage lenders rose a day after Trump said he was directing his representatives to buy $200 billion in mortgage bonds to drive down housing costs.
LoanDepot rose 19%, Rocket Companies gained 6.1% and Opendoor Technologies rose 12.7%.
Vistra rose 13% after Meta Platforms signed 20-year deals to buy power from the company’s nuclear power plants.
Advancing issues outpaced declining issues by a 2.76-to-1 ratio on the NYSE and by a 2.32-to-1 ratio on the Nasdaq.
The S&P 500 posted 24 new 52-week highs and two new lows, while the Nasdaq Composite posted 70 new highs and 10 new lows.
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