U.S. stocks closed at record highs on Friday, with the Dow Jones Industrial Average and the S&P 500 setting new peaks after a mixed December jobs report showed unemployment falling more than expected, despite weaker job growth.
The Dow gained 0.5%, or 238 points, to close at a record 49,505, while the S&P 500 advanced 0.6%. The Nasdaq Composite rose 0.8% but remained below its October all-time high. Small-cap stocks outperformed, with the Russell 2000 jumping 0.8% on the day and posting a 4.6% gain for the week.
U.S. employers added 50,000 jobs in December, below economists’ expectations of around 73,000. However, the unemployment rate edged down to 4.4% from a revised 4.5% in November, coming in better than forecasts.
The data capped a subdued year for hiring but reinforced expectations that the Federal Reserve will keep interest rates unchanged at its late-January meeting.
Meanwhile, uncertainty around potential Supreme Court action on President Trump’s broad tariff policies persisted, as no ruling was issued on Friday.
In individual stocks, shares of Oklo and Vistra surged after Meta selected the companies as part of its broader push into nuclear-powered energy solutions.
Frequently Asked Questions
Why did markets rise despite weaker job growth?
Investors focused on the drop in the unemployment rate, which suggests labor market resilience and reduces pressure on the Fed to hike rates.
What does lower unemployment mean for interest rates?
It strengthens expectations that the Federal Reserve will hold rates steady at its upcoming meeting rather than tightening further.
Why did small-cap stocks outperform this week?
Small caps often benefit from stable rate expectations and improved domestic economic outlook, driving the Russell 2000 higher.
Why is the Nasdaq still below its record high?
Tech stocks remain sensitive to rate expectations and profit-taking after strong earlier gains, keeping the index below its October peak.
Why did Oklo and Vistra shares jump sharply?
Their stocks rallied after Meta selected them for its nuclear power initiatives, highlighting growing demand for clean and reliable energy.
