Key Market Movements and Economic Indicators
In the final trading session of the week, all three major U.S. stock market indices—the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite—experienced moderate gains, also recording solid weekly performance.
Daily Market Performance
- Dow Jones Industrial Average: Increased by 0.48% to close at 49,504.07 points.
- S&P 500: Rose by 0.65% to finish at 6,966.28 points.
- Nasdaq Composite: Advanced by 0.81% to end at 23,671.35 points.
Labor Market Data and Fed Expectations
The Bureau of Labor Statistics, part of the U.S. Department of Labor, reported that non-farm payrolls increased by 50,000 jobs in December. The unemployment rate stood at 4.4% for the month, lower than the anticipated 4.5%. Economists had forecasted an increase of 70,000 jobs and a 4.5% unemployment rate.
These figures, particularly the unemployment rate, are seen as supportive of expectations that the Federal Reserve (Fed) will maintain its interest rate unchanged at their upcoming meeting. The central bank has reduced rates by 25 basis points in the last three meetings, but may now lean towards stability.
Sector-wise Market Performance
Nine out of eleven sectors in the S&P 500 closed with gains, led by materials (+1.80%) and utilities (+1.24%). Within the Dow Jones Industrial Average, Home Depot (+4.19%) and Sherwin-Williams (3.59%) were notable contributors to the upward movement.
Weekly Market Performance
Over the first week of the new year, all three indices displayed positive trends. The Dow Jones accumulated a 2.32% gain, the S&P 500 recorded a 1.57% increase, and the Nasdaq advanced by 1.88%, bolstered by technology stocks.
Key Questions and Answers
- What were the major market indices’ performance in the last trading session of the week?
All three major U.S. indices—Dow Jones Industrial Average, S&P 500, and Nasdaq Composite—experienced moderate gains in the final trading session of the week. - How did non-farm payrolls data impact the market?
The reported increase of 50,000 jobs in December and a lower-than-expected unemployment rate of 4.4% supported the market’s anticipation that the Federal Reserve would maintain its interest rate unchanged. - Which sectors led the gains in the S&P 500?
The materials and utilities sectors were the top performers, with gains of 1.80% and 1.24%, respectively. - What was the overall market performance for the week?
All three major indices—Dow Jones, S&P 500, and Nasdaq Composite—reported positive trends over the first week of the new year.
