The S&P 500 closed at fresh record highs Friday as the December jobs report still pointed to underlying economic strength despite coming in weaker than expected.
At 4:00 p.m. ET (21:00 GMT), the blue-chip Dow Jones Industrial Average rose 237 points, or 0.5%, the benchmark S&P 500 index gained 0.6% to clinch a record close of 6,963.21 and the tech-heavy NASDAQ Composite rose 0.8%. The S&P 500 closed up more than 1% for the week, while the Dow and Nasdaq added about 2%.
Get premium stock market updates, analyst recommendations on InvestingPro Mixed December jobs reading still signals underlying economic growth The U.S. economy added 50,000 jobs in December, down from 56,000 in November, according to Labor Department data on Friday. Economists had anticipated a reading of 66,000.
November’s total was also revised lower from 64,000 initially. The Labor Department’s Bureau of Labor Statistics flagged that October’s decline in payrolls was revised lower by 68,000 to a loss of 173,000.
With the revisions, employment in October and November combined is 76,000 lower than previously reported, a trend that the BLS said resulted from additional information received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.
However, the unemployment rate edged down to 4.4%, compared to forecasts that it would match November’s revised level of 4.5%.
The household survey data, however, was "much stronger," Jefferies said, showing labor force participation down 46,000 even as employment rose 232,000 and unemployment fell 278,00.
"The probability of a March cut looks relatively low after this data, but we still have 2 more employment reports, 3 more CPI reports, and a host of additional data points that we expect will show softer growth in Q1, low risk of higher inflation, and good reason for the Fed to continue with the rate cutting cycle," Jefferies added.
Intel surge sparks rebound in chip stocks; homebuilders jump after Trump touts $200B mortgage bond plan Intel Corporation (NASDAQ:INTC) surged 10% after President Donald Trump waxed lyrically about the gains the government had made on its stake in the chipmaker.
“The U.S. government is proud to be a Shareholder of Intel, and has already made, through its U.S.A. ownership position, Tens of Billions of Dollars for the American People — IN JUST FOUR MONTHS," Trump said in a Truth Social post.
Homebuilders including DR Horton Inc (NYSE:DHI), PulteGroup Inc (NYSE:PHM), and KB Home (NYSE:KBH) were in the ascendency as mortgage rates drop to the lowest level in three years after Trump floated the idea of his "representatives" purchasing $200B mortgage-backed securities.
