Markets Wrap: S&P 500 Edges Higher as Wall Street Awaits Jobs Report

Stock Market Wrap

S&P 500 Edges Higher as Wall Street Awaits Jobs Report

Jan 08, 2025

Market Overview:

The S&P 500 posted a modest gain of 0.16%, closing at 5,918.25, while the Nasdaq Composite slipped 0.06% to 19,478.88. The Dow Jones Industrial Average outperformed, rising 0.25% to 42,635.20. All three major indexes remain on track for their second consecutive weekly loss.

Minutes from the Federal Reserve’s December meeting highlighted concerns about persistent inflation, suggesting fewer rate cuts may occur in 2025. Bond yields fluctuated during the session, with the 10-year Treasury note reaching 4.7%, nearing levels last seen in late April. Investors are awaiting Friday’s payroll report for further clarity on the labor market.

Meanwhile, equity markets struggled to find direction as traders hesitated to make significant moves ahead of key employment data. The S&P 500 briefly fell below the 5,900 level before reclaiming it. The options market indicates a potential 1.2% swing in either direction post-employment data release, reflecting heightened uncertainty.

Global markets also showed mixed performance, with UK bond yields hitting a decade high. The Bloomberg Dollar Spot Index rose 0.4%.

Corporate News:

Palantir: The stock fell 2.5%, marking its third consecutive decline despite being one of 2024’s top S&P 500 performers with a 340% annual gain.
Advanced Micro Devices (AMD): Shares dropped 4.3% following a downgrade by HSBC, citing challenges in competing with Nvidia.
Merck & Co.: Downgraded to “hold” from “buy” by Truist Securities due to growth concerns.
Palo Alto Networks: The cybersecurity firm received two analyst downgrades.
Albertsons Cos.: Raised its adjusted earnings outlook for the year, signaling optimism despite the collapse of its proposed deal with Kroger.
US Utilities Sector: Upgraded to “overweight” by RBC Capital Markets, citing its strength as a defensive sector.

Looking Ahead

Market participants will closely watch Friday’s December payroll report for clues on labor market trends and the Federal Reserve’s potential monetary policy adjustments. With bond yields near levels that have historically pressured equities, further market volatility remains a possibility.

*All data in this blog is sourced from reputable media outlets such as CNBC, Yahoo Finance, and Bloomberg. If any content infringes on copyright, please notify us for immediate removal.