What Is Causing the Stock Market to Climb Today?
The stock market is doing much better this week than it did last week, and we have the upcoming non-farm payroll report to thank.
Last week was terrible for the stock market with day after day of losses, but Monday trading looks strong as the markets reopen, with all three indices trending upward.
The Nasdaq Composite is looking strong today with an increase of 1.77%. The Dow Jones climbed 0.80% Monday morning, and the S&P 500 gained 1.26%. These gains are in stark contrast to last week’s losses, and investors should know the impetus behind this turnaround.
Key jobs data will be released this week, which is expected to be promising, and the market is on the rise partly in anticipation of those numbers. Of course, if the data proves to be negative, then there will be a complete flip in the market movements that may be more drastic in its fall than it was on the rise.
The current data indicates that non-farm payrolls may have increased by 153,000 through December, and it also indicates that the unemployment rate stayed steady. If so, that would be promising for the stock market and should help move the indices higher.
Shortened Trading Week
Investors should be aware that this week will be a shorter trading week again as the markets will be closed on Thursday to mourn the passing of former US president Jimmy Carter. As with the last couple of holiday weeks, this makes for a shorter trading week that will compact trading and possibly increase activity throughout the days that the market is open.
Incoming Social Security Payments
A spending spree may be coming very soon as outgoing US president Joe Biden approved a Social Security payout for many Americans. This was to make up for a shortfall in 2024, and about 2.5 million people will receive a lump sum payment as a result.
As these payments roll out, we should see an economic boost that could directly spur stock market gains. A number of key decisions by Biden as he departs could be overturned by incoming President Donald Trump, but doing so could take time. Among these is a ban on oil drilling along hundreds of miles of US coastline, which will directly impact oil and gas concerns for the near future.
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