U.S. stocks recorded slight gains on Friday, driven by a mixed labor market report. This report reinforced expectations that a new interest rate cut by the Federal Reserve would be delayed, but it did not completely rule it out. The S&P 500 rose 0.2% at the start of trading, approaching its record highs recorded earlier in the week. The Dow Jones also rose 147 points (0.3%) by 9:35 a.m. ET, while the Nasdaq remained almost stable.
The report showed a slowdown in employment in December, compared to expectations, but in return, it revealed an improvement in the unemployment rate that exceeded estimates. This supported the idea of a labor market experiencing “lower employment and lower layoffs.” This improvement was enough to reduce expectations of an interest rate cut at the next meeting to 5%, after it was 11% the previous day, according to CME data.
In the bond market, yields varied. The 10-year Treasury yield stabilized at 4.19%, while the 2-year yield rose to 3.50% from 3.49%. However, markets still expect at least two interest rate cuts over the next year, with continued concerns that this cut may support growth, but may also refuel inflation.
On Wall Street, Vistra Energy’s stock rose 14.6% after signing a 20-year agreement to supply Meta with electricity from three nuclear power plants. Oklo’s stock also rose 12% following a similar agreement to secure nuclear fuel and support a project in Ohio. In contrast, General Motors’ stock fell 1.6% after recording losses of $6 billion in the last quarter of 2025, due to a decline in electric car production and other factors that affected demand. WD-40’s stock fell 13.7% following the release of results that fell short of analysts’ expectations.
Globally, indices rose in most parts of Europe and Asia. The French CAC 40 rose 1%, and the Japanese Nikkei 225 rose 1.6%. In Tokyo, Fast Retailing’s stock jumped 10.6% after quarterly operating profit grew by about 34% and raised annual expectations. (Al-Ain)
