U.S. stocks moved higher Friday as investors digested December’s jobs report and leaned further into expectations that the Federal Reserve will keep interest rates on hold later this month. The data helped steady sentiment after a volatile end to 2025, with markets finding footing as macro uncertainty begins to narrow.
The Dow Jones Industrial Average rose about 0.5%, while the S&P 500 gained roughly 0.6% and the Nasdaq Composite advanced more than 0.7%. All three major indexes remained on track to finish the first full trading week of 2026 in positive territory, supported by easing rate pressure and selective strength in tech and industrial names.
Market Movers:
- Intel (INTC) +8%: Shares jumped after President Trump praised CEO Lip-Bu Tan and highlighted the federal government’s equity stake in the chipmaker, reinforcing optimism around Intel’s role in reshoring advanced semiconductor manufacturing. The move extended gains sparked earlier this week by CES product launches and progress on the company’s 18A chip process.
- Oklo (OKLO) +13%: Shares surged after the nuclear startup announced a long-term power supply agreement with Meta, marking its first major commercial deal. The news boosted sentiment across nuclear and power infrastructure stocks tied to rising AI-driven data center demand.
- Vistra (VST) +15%: The utility stock rallied after confirming long-duration nuclear power agreements connected to hyperscaler customers, strengthening expectations that baseload power providers will be key beneficiaries of AI-related electricity demand growth.
- iHeartMedia (IHRT) -10%: Shares slid after a brokerage downgrade cited valuation concerns following the stock’s sharp rally last year and ongoing pressure from shifting advertising trends. Investors also remain cautious about the company’s leverage amid a softer ad environment.
- Qualcomm (QCOM) -3%: Shares fell after an analyst downgrade flagged near-term handset headwinds and potential share losses in upcoming device cycles, despite longer-term optimism around AI and data center exposure.
Jobs Data Firms Up The Fed Outlook
December’s employment report showed the U.S. added 50,000 jobs, undershooting expectations but reinforcing the narrative of a cooling — not collapsing — labor market. The unemployment rate edged down to 4.4%, extending the “no-hire, no-fire” trend that defined much of 2025. The data effectively sealed expectations that the Federal Reserve will stand pat at its upcoming meeting, giving investors more confidence around the near-term policy backdrop after months of shutdown-related data gaps.
Tariff Ruling And Geopolitics Remain In Focus
Markets are also bracing for a possible Supreme Court ruling on the legality of President Trump’s sweeping tariff program, a decision that could carry major implications for global trade flows and corporate supply chains. Friday is the court’s first scheduled opinion day of the year, keeping investors on edge.
Meanwhile, geopolitical developments surrounding Venezuela continue to draw attention, particularly as the White House engages energy companies on plans to rebuild the country’s oil infrastructure. While markets have largely shrugged off immediate fallout, the longer-term impact on energy supply and pricing remains a key watch point.
Looking Ahead
With rate expectations now largely settled for January, investors will turn their focus to upcoming inflation data, corporate earnings season, and any clarity from the Supreme Court on tariffs. If macro surprises remain limited, markets may continue to grind higher — but policy and geopolitical risks remain close enough to keep volatility firmly in play.
