Overview of Wall Street Performance
On Friday morning, the three major indices on Wall Street are trading in positive territory. Investors are reviewing a crucial labor report that influences the Federal Reserve’s decisions and anticipating a Supreme Court ruling on global tariffs imposed by the US government.
- Dow Jones Industrial Average: Up 0.37% to 49,449.54 points
- S&P 500: Up 0.46% to 6,952.97 points
- Nasdaq Composite: Up 0.56% to 23,611.32 points
Deceleration in US Job Growth and Impact on Fed Policy
The growth in US employment slowed more than expected in December, amid cautious corporate sentiment. Non-farm payrolls added 50,000 new jobs last month, while the country’s unemployment rate fell to 4.4%.
These figures support the expectation that the Fed will maintain its interest rate unchanged in their upcoming meeting. The central bank has raised rates by 25 basis points in the last three meetings, but is expected to pause at the start of this year.
Supreme Court Delay on Global Tariff Case
Investors also anticipated a ruling from the US Supreme Court on a case testing the legality of President Donald Trump’s global tariffs. However, it was announced that the Court will not issue a decision on this Friday.
Individual Stock Performance
Among individual stocks, Meta Platforms shares rose 0.83% after signing a power agreement with existing and developing nuclear plants, making it the largest atomic energy buyer among tech giants.
Taiwan Semiconductor Manufacturing Company (TSMC) shares increased 0.90%, surpassing revenue expectations with a 20% growth, reinforcing confidence in chip demand. Nvidia (-0.08%) and Apple (-0.33%) shares also reported better-than-expected income.
Key Questions and Answers
- What is driving Wall Street’s performance today? Investors are reviewing a crucial labor report influencing the Federal Reserve’s decisions and anticipating a Supreme Court ruling on global tariffs.
- How did the US job growth perform in December? The growth slowed more than expected, with 50,000 new jobs added and the unemployment rate falling to 4.4%.
- What is the expected action from the Federal Reserve? The Fed is expected to maintain its interest rate unchanged in their upcoming meeting, pausing after raising rates by 25 basis points in the last three meetings.
- What was the anticipated Supreme Court ruling on global tariffs? The US Supreme Court was expected to issue a ruling on a case testing the legality of President Donald Trump’s global tariffs, but no decision was made on this Friday.
- Which stocks performed well today and why? Meta Platforms shares rose after signing a power agreement with nuclear plants, and TSMC shares increased due to better-than-expected revenue, reinforcing confidence in chip demand.
