Nasdaq 100 and S&P500: US Indices Eye Records as Jobs Miss Supports Rate Cut Bets

Nasdaq Edges Higher on Mixed Jobs Data and Tariff Uncertainty

The Nasdaq Composite (IXIC) is edging higher at the mid-session on Friday after weaker-than-expected labor market data held bets in check on U.S. interest cuts. Also, after a brief retreat shortly after the opening, the market rebounded after the Supreme Court didn’t rule on Trump’s tariffs.

December Jobs Report Misses Expectations

The labor market report showed nonfarm payrolls increased 50,000 in December, compared with a forecast for a 60,000 rise, according to economists polled by Reuters.

In 20 days, the Fed will make its next rate decision. Today’s jobs data actually boosted bets on a pause in rate cuts in January. However, they are still pricing in about 54 basis points of easing in 2026, according to data compiled by LSEG.

Mixed Economic Signals Support Stock Market

It’s hard to argue that the labor market is failing and in urgent need of a monetary policy boost. However, the picture is still murky with payrolls undershooting expectations and downward revisions to prior months. The stock market apparently likes the data. After the three-month average fell into negative territory, investors believe the Fed will have to cut in the future and this is boosting demand for stocks. However, the jobs data is not weak enough to weaken growth in the economy.

Supreme Court Delays Tariff Ruling

In other news, the U.S. Supreme Court did not deliver a ruling on the legality of Trump’s sweeping tariffs. Investors are anticipating heightened volatility across all financial sectors when they do.

Sector Performance: Utilities Lead Mid-Session Gains

Sector analysis at the mid-session is showing 10 out of 11 higher. Utilities (1.64%), Materials (1.57%) and Consumer Staples (1.09%) are providing most of the support for the S&P 500 Index. Healthcare (-0.01%) and financials (-0.05%), two leaders from earlier in the week, are under pressure.

Nasdaq-100 Movers

The Nasdaq-100 Index is being supported by Intel (+9.78%), Lam Research (+8.15%), ASML (+6.55%) and Applied Materials (+6.34%). Strategy (-4.00%), DoorDash (-3.95%), Datadog (-2.87%) and CoStar Group (-2.85%) are declining.

Individual Stock Highlights

Several stocks are in the news today. That 1.64% jump in utilities is being led by Constellation Energy (+4.00%) and Entergy (+2.00%), which rose after TD Cowen initiated coverage of several utilities stocks.

The top Nasdaq-100 stock, Intel, rose after Trump said he had a “great meeting” with the chipmaker’s chief executive officer, Lip-Bu Tan.

Shares of mortgage lenders rose a day after Trump said he is ordering his representatives to buy $200 billion in mortgage bonds to bring down housing costs. Loan Depot surged 19%, Rocket Companies gained 6.1% and Opendoor Technologies rose 12.7%.

Technical Analysis: Nasdaq Eyes Record High

Technically, the Nasdaq Composite (IXIC) main trend is up. The current price has the market in a position to reaffirm the trend with a breakout over yesterday’s high at 23723.37. This would open the door for a test of the record high at 24019.99.

The market is currently being propped up by the 50-day moving average at 23278.19. This is the last potential support before the main bottom at 23119.49.

S&P 500 Hits New Record

The S&P 500 Index (SPX) just hit another record high on Friday. It is being supported by an uptrend line at 6895.50. A failure to hold this indicator will be a sign of weakness. It could trigger an acceleration into the 50-day moving average at 6818.00.

Market Outlook

Into the close, the U.S. equity indexes are in strong positions to make new all-time highs, but momentum appears to be slowing with the trend line support catching up to the market and putting them in a position to rollover into the 50-day moving average support.

Upside momentum has to begin moving higher and faster soon or prices are going to retreat. It seems that with every new rally, some investors are taking profits.

More Information in our Economic Calendar.