US stocks experienced a positive shift on Friday as investors reacted to the December jobs report and anticipated a Supreme Court ruling regarding President Trump’s controversial tariffs. The S&P 500 saw an increase of about 0.4%, while the Nasdaq Composite rose approximately 0.3%. The Dow Jones Industrial Average ticked up by 0.1%, reflecting a generally optimistic market mood following a mixed trading session on Thursday. All three major indexes are set to conclude the first full week of 2026 on a high note.
Two primary factors were driving market interest: the December jobs report and the impending Supreme Court decision concerning the legality of Trump’s tariffs. The nonfarm payrolls report returned to its usual schedule after previous disruptions due to the government shutdown, revealing that the US economy added 50,000 jobs in December. This figure fell short of the analysts’ expectations of around 70,000 jobs, reinforcing speculation that the Federal Reserve would likely maintain interest rates at its upcoming meeting.
The unemployment rate, however, saw a decline from 4.6% in November to 4.4% in December, consistent with the ongoing trend of a labor market characterized by stability without significant layoffs.
Investors are now closely monitoring the Supreme Court’s decision day. The court’s ruling could determine whether Trump properly invoked national emergency laws to impose wide-ranging tariffs, which could have substantial implications for the economic landscape and global trade relations.
In further developments, President Trump announced the cancellation of a planned second wave of attacks on Venezuela, attributing this decision to cooperation from the country’s interim government. He also emphasized US efforts to assist in rebuilding Venezuela’s ailing energy infrastructure, which has been a focal point of his administration’s foreign policy. The White House scheduled talks with major global oil companies about the potential utilization of Venezuela’s vast oil reserves.
On the domestic economic front, Trump directed Freddie Mac and Fannie Mae to invest $200 billion in mortgage-backed securities. This move aims to ease mortgage rates amid growing affordability issues, although specifics of the plan remain vague and are being scrutinized by market participants.
In individual stock movements, Intel’s shares surged over 8% following a favorable comment from Trump regarding CEO Lip-Bu Tan, showcasing a shift from earlier tensions about the company’s ties to China. Meanwhile, Oklo, a small nuclear reactor firm, saw a 13% rise in its stock after striking a deal to supply power to Meta, which aligns with increasing investments in advanced energy technologies.
The broader markets were responding positively to the December jobs report and adjustments in future monetary policy. Stock futures had indicated a slight uptick, with the likelihood of unchanged interest rates rising to 97%, according to recent trading data.
While the job creation figures may have missed expectations, the decrease in the unemployment rate contributed to a sense of cautious optimism in the market. Investors are weighing these mixed signals as they navigate the intricate landscape of economic data and political developments.
Overall, the trading environment indicates a complex interplay of domestic economic indicators and international geopolitical factors shaping investor sentiment and market dynamics as 2026 unfolds.
