Wall Street Rises After Mixed U.S. Jobs Report/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks inched higher Friday following a mixed jobs report that left investors uncertain about future interest rate cuts. The S&P 500 neared record levels, while traders pulled back expectations for a January rate cut. Strong performances by energy and tech-related stocks helped lift markets.
Wall Street Rises After Jobs Report Quick Looks
- S&P 500 rose 0.2%, nearing all-time high
- Dow Jones gained 147 points in early trading
- Nasdaq was flat amid mixed investor sentiment
- Job growth weaker than expected in December
- Unemployment rate improved, surprising economists
- Fed rate cut odds for January dropped to 5%
- Traders still expect at least two rate cuts in 2026
- 10-year Treasury yield held steady at 4.19%
- 2-year Treasury yield edged up to 3.50%
- Vistra stock surged 14.6% after nuclear power deal with Meta
- Oklo shares rose 12% on Meta-backed nuclear project
- General Motors dropped 1.6% due to $6 billion EV-related charge
- WD-40 fell 13.7% after disappointing quarterly earnings
- European and Asian markets mostly moved higher
- Japan’s Nikkei 225 jumped 1.6%, led by Fast Retailing’s strong earnings
Wall Street Rises After Mixed U.S. Jobs Report
Deep Look
NEW YORK — Wall Street moved modestly higher on Friday, driven by a complicated U.S. jobs report that offered mixed signals about the state of the labor market and its impact on future interest rate decisions.
The S&P 500 climbed 0.2% in early trading and approached the record high it reached earlier in the week. The Dow Jones Industrial Average rose by 147 points, or 0.3%, while the Nasdaq composite remained nearly flat as of mid-morning.
The latest data from the U.S. Labor Department revealed that hiring in December came in below economists’ expectations, suggesting a cooling job market. However, the unemployment rate showed unexpected improvement. Analysts interpreted the report as supporting the idea that the labor market is entering a “low-hire, low-fire” phase — with limited hiring but also no significant layoffs.
In response, traders lowered their expectations for a Federal Reserve interest rate cut at its upcoming meeting at the end of January. According to CME Group data, the probability of a rate cut dropped to just 5%, down from 11% the previous day. Still, markets remain confident that the Fed will cut rates at least twice later in the year.
Interest rate decisions remain critical for markets. Lower rates typically stimulate economic activity and support higher stock prices, but can also reignite inflation if applied prematurely.
Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, commented, “Until the data provide a clearer direction, a divided Fed is likely to stay that way. Lower rates are likely coming this year, but the markets may have to be patient.”
In the bond market, the 10-year Treasury yield — which reflects long-term economic and inflation expectations — remained unchanged at 4.19%. The 2-year Treasury yield, which responds more directly to short-term interest rate expectations, ticked up slightly to 3.50% from 3.49%.
On the corporate front, several major moves shaped market sentiment. Power company Vistra jumped 14.6% after signing a 20-year agreement to provide electricity from three of its nuclear plants to Meta Platforms. Meta and other large tech companies have been actively securing power for their energy-intensive artificial intelligence operations.
Similarly, energy startup Oklo climbed 12% after announcing it had signed a deal with Meta to advance a nuclear facility project in Pike County, Ohio, and secure nuclear fuel supplies.
However, not all company news was positive. General Motors fell 1.6% after disclosing a $6 billion charge for the fourth quarter of 2025, attributed to its downsizing of electric vehicle operations. This comes on top of $1.6 billion in EV-related charges the company reported in the prior quarter. Reduced government incentives and looser fuel-emission standards have weakened demand for EVs, putting pressure on automakers.
WD-40 shares plunged 13.7% after its quarterly earnings fell short of analyst expectations. Chief Financial Officer Sara Hyzer said the weaker results were due to timing issues and not a drop in consumer demand. The company reaffirmed its financial projections for the full year.
Internationally, global markets mirrored the U.S. uptrend. In Europe, France’s CAC 40 rose 1%. Over in Asia, Japan’s Nikkei 225 surged 1.6%, driven by a strong performance from Fast Retailing, the parent company of Uniqlo. Fast Retailing posted a 34% year-over-year increase in operating profit and raised its full-year forecast, pushing its stock up 10.6%.
Despite the uncertainty surrounding future Federal Reserve decisions, Friday’s trading showed cautious optimism. Investors remain focused on economic indicators, corporate earnings, and any further clarity from the Fed in the weeks ahead.
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