US Stocks Reach New Highs Amid Mixed Job Data and Tariff Speculations

Market Overview

US stocks rose to all-time highs on Friday, January 9, as investors reacted to the mixed December jobs report and anticipated a ruling from the Supreme Court regarding President Trump’s tariffs.

The S&P 500 gained 0.6% to reach a new record, while the Dow Jones Industrial Average rose about 0.5%, marking its own all-time high close. The Nasdaq Composite advanced 0.8%, contributing to a winning week for all three major indices.

December Jobs Report Analysis

Friday's labor market data revealed some contrasting signals. The nonfarm payrolls report indicated that the US added only 50,000 jobs in December, falling short of economists' expectations of 70,000. However, the unemployment rate saw a decrease, dropping to 4.4% from 4.6% in November, reflecting a steady labor market trend where businesses are hesitant to hire or fire.

Wall Street analysts believe this slowdown in job creation and lower unemployment will likely lead the Federal Reserve to maintain interest rates during their upcoming meeting in late January.

Supreme Court Tariff Rulings

Investors were also focused on the potential outcome of a Supreme Court decision regarding Trump’s tariffs, which could have significant ramifications for US trade policy. The court's next scheduled opinion day is set for January 14, adding urgency to investor caution.

Venezuela and Oil Market Dynamics

Amid geopolitical developments, Trump posted that he has canceled plans for a second wave of attacks on Venezuela, citing improved cooperation from the interim government. He stated that major investments of at least $100 billion from US oil majors are aimed at rebuilding Venezuela's oil infrastructure.

This announcement comes at a time when Venezuela, despite having the world’s largest proven oil reserves, is struggling due to years of mismanagement and corruption.

Trump's Mortgage Bond Strategy

At home, Trump's directive for Freddie Mac and Fannie Mae to purchase $200 billion in mortgage-backed securities aims to address housing affordability. Currently, market reactions are mixed, as the details remain uncertain.

Sector Performance Highlights

Sector-wise, technology stocks surged, particularly semiconductors. Intel’s shares skyrocketed over 8% following Trump's praise for CEO Lip-Bu Tan, indicating support for the chip industry’s comeback in the US. Meanwhile, Oklo's shares soared more than 13% based on a new agreement with Meta for power supply from small modular reactors.

On the downside, General Motors shares dipped nearly 2% after the company indicated an additional $6 billion charge related to its electric vehicle segment, despite overall strong sales in 2025.

Conclusion

The stock market concluded a busy trading week with a positive sentiment as the S&P 500, Dow, and Nasdaq all hit record highs. Investors are now looking ahead to crucial data and rulings that may shape economic strategies moving forward.