On Friday, the S&P 500, Dow Jones, and Nasdaq all closed higher, with stock indexes reaching new highs. The US economy showed signs of resilience, with a decline in the unemployment rate and higher average hourly earnings. Various sectors rallied, including chipmakers, home builders, and power producers. Global equity markets also saw gains, with Europe and China hitting new highs. The Supreme Court deferred a decision on Trump’s tariffs until next Wednesday. The US Dec nonfarm payrolls were weaker than expected, but the unemployment rate and average hourly earnings exceeded expectations.
Chipmakers and data storage companies surged on Friday, boosting the broader market. Home builders and suppliers rallied after Trump’s call for Fannie Mae and Freddie Mac to purchase mortgage bonds. Power producers soared following electricity deals for data centers by Meta Platforms. Retailers dipped due to market uncertainty over Trump’s tariffs. Several stocks, including Sandisk, Intel, and Lam Research, led the gains. The bond market saw mixed movements, with a rise in T-note yields due to positive economic data and inflation expectations. European bond yields were also mixed, with Germany remaining unchanged and the UK falling to a 2.5-month low. Eurozone retail sales and German industrial production exceeded expectations. ECB officials suggested current interest rates are appropriate, with a minimal chance of a rate hike at the next policy meeting. US stock movers included Revolution Medicines, Rocket Cos, and Lockheed Martin, among others.
AXT Inc and WD-40 Co reported weaker-than-expected results, causing their stocks to decline. HealthEquity and Equity Residential also saw downgrades, leading to losses in their stock prices. Qualcomm and Mattel were downgraded by analysts, resulting in a drop in their stock value. Southwest Airlines, Insmed Inc, and Carvana saw gains after positive news and upgrades from analysts. Earnings reports for XCF Global Inc (SAFX) are expected on January 12, 2026.
Read more at Barchart.: S&P 500 Rallies to a New Record High on US Economic Optimism