Jobs Report Kicks Off 2025’s First Full Trading Week: Key Insights
As 2025 begins, investors brace for crucial labor market data and corporate earnings.
US, Jobs Report, Stock Market, Nvidia, Federal Reserve
New York: US stocks are feeling the heat as we dive into the first full week of 2025. The S&P 500 has dropped over 1.5% in the last five trading days, while the Nasdaq Composite is down nearly 2%. The Dow Jones is also down about 1.5%.
This week is crucial for investors, with the November jobs report from the Bureau of Labor Statistics being the highlight. We’ll also get updates on job openings and wage growth, plus some insights into the services sector.
It’s the last look at the labor market before the Fed meets at the end of January. In the corporate world, tech giants like Nvidia will be in the spotlight during the Consumer Electronics Show, and Delta and Constellation Brands are set to share their quarterly results.
Last year, the labor market cooled off a bit, but the Fed seems pretty confident about where things are heading. Jerome Powell, the Fed Chair, said the labor market is looking “good” and that the risks we saw last summer have eased up.
He mentioned that the labor market is looser than it was before the pandemic and is cooling down gradually. Economists are predicting that the December jobs report will show around 153,000 new jobs added, which is a drop from November’s 227,000.
Even though the labor market is solid, growth has slowed down. Morgan Stanley’s economist noted that while things have cooled, it’s not happening as suddenly as it did last summer.
As of now, there’s only an 11% chance that the Fed will cut rates in January, according to the CME FedWatch Tool. The CES tech conference kicks off on Monday, featuring a keynote from Nvidia’s CEO.
Nvidia’s stock has dipped over 1% since its last earnings report, but it still ended 2024 up more than 150%. Analysts are saying that the market is shifting from semiconductors to software, which is less affected by trade issues with China.
Interestingly, the S&P 500 didn’t see any gains during the typical Santa Claus rally period this year, which usually sees a rise of about 1.3%. Instead, it fell about 0.5%. Historically, a negative return during this time can signal a weaker year ahead.
But don’t count it out just yet! Last year also missed the Santa Claus rally, yet the S&P 500 still rose around 24% in 2025. Some experts believe that the upcoming jobs report could be a game-changer.
With the 10-year Treasury yield hovering around 4.6%, there’s a sense that softer employment data could help ease the current market sentiment. If that happens, it might just give stocks a boost.
So, keep an eye on the economic calendar this week. We’ve got a lot of data coming in, including job openings and the all-important nonfarm payrolls on Friday. It’s going to be an interesting week for sure!
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