The Dow and Nasdaq rose by over +300 points each on Friday, setting a positive tone for the first full trading week of 2025. Pre-market futures are up again, with the Dow increasing by +185 points, followed by the Nasdaq’s +220-point gain and the S&P 500’s +45-point rise.
The recent price surge may be attributed to optimistic sentiment as the new Trump administration takes office. Analysts anticipate a continued robust market driven by deregulation, pro-crypto policies, and potential tax cuts for high earners. However, it is essential to note that this level of growth hasn’t been seen in nearly 30 years since the Internet boom of the late ’90s.
On Monday, two economic metrics will be released: S&P final Services PMI for December and Factory Orders for November. Analysts expect these reports to show a strong services sector but a softer manufacturing sector, consistent with recent economic prints.
The upcoming week is marked as “Jobs Week,” starting Tuesday with the November Job Openings and Labor Turnover Survey (JOLTS) report. This will be followed by private-sector payrolls for December from ADP on Wednesday, with normal Weekly Jobless Claims numbers out Thursday. The Employment Report, expected to show +155K new jobs filled last month, is crucial in determining the Fed’s interest rate decisions.
The Fed’s dual mandate of curbing inflation and fostering full employment will be closely watched. If labor force hires continue to erode, the Fed may reconsider its interest rate cuts for the year.
Source: https://finance.yahoo.com/news/key-labor-market-data-deluge-154600029.html