U.S. markets edged slightly higher on Friday as investors digested a mixed Wall Street jobs report that complicated—but didn’t eliminate—the chances of another Federal Reserve rate cut. The S&P 500 gained 0.2% in early trading, inching toward its record high from earlier in the week, while the Dow Jones Industrial Average rose 0.3%. The Nasdaq Composite traded flat, reflecting a more cautious tone among tech names.
Treasury yields were mixed after the Labor Department said U.S. employers added fewer jobs than expected in December, yet the unemployment rate improved. For investors, that combination suggests slowing—but not collapsing—economic momentum, keeping the Fed’s options open.
Futures Pointed to a Quiet, Cautious Open
Before the opening bell, futures were aligned with the muted sentiment. S&P 500 and Dow futures rose about 0.1%, while Nasdaq futures inched up 0.2%. With traders awaiting the December Wall Street jobs report, markets were bracing for a session defined by micro-moves rather than sweeping trends.
Homebuilder Stocks Extend Gains
Homebuilder shares continued their climb following President Donald Trump’s announcement that the federal government would purchase $200 billion in mortgage bonds. The move is intended to push down mortgage rates at a time when affordability remains a major roadblock for U.S. buyers.
KB Home (NYSE:KBH), D.R. Horton (NYSE:DHI), and Lennar Corp. (NYSE:LEN) rose between 1% and 2% in premarket trading, following the roughly 5% surge each enjoyed the day before. Lower mortgage rates historically boost homebuilder demand, giving the sector a tailwind heading into 2026.
GM Slips on New EV-Related Charges
General Motors (NYSE:GM) fell nearly 2% after announcing it would take a nearly $6 billion fourth-quarter charge due to sputtering electric-vehicle sales. This follows an earlier $1.6 billion charge last quarter tied to similar challenges. For GM, the slowdown underscores the increasingly competitive and uneven EV landscape.
Fed Rate Outlook Hinges on Today’s Data
The Federal Reserve cut rates three times in late 2025 as officials grew more concerned about weakening labor conditions, even with inflation still above its 2% target. The Wall Street jobs report for December is especially pivotal because the government didn’t release data in October due to the six-week shutdown, and November’s numbers were skewed by the disruption.
Economists expect hiring to remain subdued, reflecting companies’ hesitancy to expand payrolls amid economic uncertainty. A surprisingly weak jobs number could boost the likelihood of a rate cut at the Fed’s next meeting on Jan. 27–28.
Supreme Court Tariff Decision Also Looms
Adding to the market’s event-packed Friday, investors were awaiting the Supreme Court’s ruling on Trump’s proposed “Liberation Day” tariffs. A favorable ruling for the administration could temporarily lift sentiment across key sectors, including manufacturing and industrials.
Global Markets Mirror the Cautious Optimism
European markets traded broadly higher, reflecting the same measured optimism seen in the U.S. Britain’s FTSE 100 rose 0.6%, France’s CAC 40 climbed 0.9%, and Germany’s DAX added 0.4%.
Asian markets were also upbeat. Tokyo’s Nikkei 225 jumped 1.6% to 51,939.89, boosted largely by Fast Retailing (OTCMKTS:FRCOF)—parent company of Uniqlo—which surged more than 10.6% after strong earnings and upgraded guidance.
Hong Kong’s Hang Seng gained 0.3%, while the Shanghai Composite climbed 0.9% after China’s inflation accelerated at its fastest pace in nearly three years, a sign that consumer demand may be recovering.
Chinese AI startup MiniMax had a standout day, soaring 109% in its Hong Kong Stock Exchange debut.
Elsewhere, Australia’s S&P/ASX 200 slipped slightly, pulled down by Rio Tinto (NYSE:RIO), which fell more than 6.2% after confirming early merger talks with Glencore (OTCMKTS:GLNCY). South Korea’s Kospi rose 0.8%, Taiwan’s Taiex dipped 0.2%, and India’s Sensex lost 0.7%.
Oil Prices Rise as Venezuela Tensions Build
Oil prices climbed after a volatile week marked by geopolitical tensions. U.S. benchmark crude rose $0.41 to $58.17 per barrel, while Brent crude advanced $0.44 to $62.43. Supply concerns deepened after the U.S. seized two additional Venezuelan tankers, including one sailing under a Russian flag that allegedly evaded sanctions.
As global markets continue to react to geopolitical risks, investors on Wall Street are keeping a close eye on energy disruptions and their inflation impact. With uncertainty rising, the closing hours of trading will test whether Wall Street can hold onto its early-session gains—or whether volatility will return.
Featured Image – Freepik
