As of today, the S&P 500 Index is up 0.27%, the Dow Jones Industrials Index has increased by 0.05%, and the Nasdaq 100 Index rose by 0.10%. The market gains are attributed to mixed signals from the U.S. labor market, with December nonfarm payrolls increasing by 50,000—lower than the expected 70,000—while the unemployment rate dropped to 4.4%, bettering projections of 4.5%. Average hourly earnings rose by 3.8% year-over-year, also exceeding expectations of 3.6%.
Housing data shows October housing starts unexpectedly fell 4.6% month-over-month to 1.246 million, which is a 5.5-year low, while building permits rose to 1.412 million, surpassing forecasts of 1.350 million. President Trump’s recent push for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds has led to significant rises in home builders’ stocks.
Internationally, Europe’s Euro Stoxx 50 reached a record high, and China’s Shanghai Composite climbed to a 10.5-year high, contributing to the positive sentiment in U.S. equity markets. The 10-year T-note yield hit 4.20%, a four-week high, causing some concern among investors.
