Investors wait for US jobs report to assess economy's health and equity gains

From Investing.com: 2025-01-05 09:00:41

Investors are eagerly awaiting the U.S. jobs report to gauge the health of the economy and determine the course of equity gains in 2025. The stock market closed 2024 with a 23% rise, the largest two-year gain since 1997-1998. The report for December is expected to show 150,000 job growth and a 4.2% unemployment rate.

Labor market data is crucial for investors as they seek confirmation of a solid economic outlook. Analysts expect a gradual slowdown in hiring, with the November report showing 227,000 job growth. The market is looking for a “Goldilocks number” in the upcoming jobs report – not too hot, not too cold.

Investors are hopeful about the U.S. economy, with 73% of institutional investors believing the country will avoid a recession in 2025. Despite a strong 2024, stocks weakened in December, with the S&P 500 falling 2.5%. The coming week also brings other market-sensitive employment figures, factory orders, and services sector reports.



Read more at Investing.com: US jobs report poses first big stocks test of 2025 By Reuters