Stocks Update ahead of Jobs Report and Tariff Ruling
Stocks changed very little Friday morning as the market waits for a decision from the Supreme Court and anticipates the latest jobs report.
Quick overview
- The U.S. Supreme Court is set to rule on tariffs, which could significantly impact trade relations and market volatility.
- The latest jobs report is expected to show a poor job market, with only about 50,000 jobs added in December.
- Stock indices have shown little change recently, but upcoming economic reports could shift market momentum dramatically.
- If tariffs are deemed illegal, it may lead to a manufacturing cycle as companies respond to reduced costs.
The U.S. Supreme Court should be ruling on tariffs Friday, and the newest jobs report is scheduled to release as well, and while the stock market waits, stocks are little changed.
The three major U.S. stock indices showed little progression Friday from the previous day with Nasdaq inching up 0.2% and the Dow and S%P 500 each adding 0.1%. Investors are waiting to see what the Supreme Court will have to say about President Donald Trump’s tariffs and if they were illegal. Later in the day, the U.S. jobs report for December will be released as well, and it is expected to show a very poor job market.
If the Supreme Court rules that the tariffs were not legal, that could drastically change trade relations between the United States and a number of countries. It could also significantly impact the cost of imported and exported goods for months, causing massive market volatility.
The Market Holds Its Breath
It is too soon to say which way the Supreme Court will vote, and their decision could have far-reaching repercussions. If the courts rule against the tariffs, then economists expect a large manufacturing cycle to commence. Many companies have held back on manufacturing because of increased costs, but if numerous new tariffs are removed, costs will at least temporarily drop.
In December, hiring slowed throughout the United States, and only about 50,000 jobs were added during the month, according to estimates. The unemployment rate fell about 44%, says the Bureau of Labor Statistics. This report for December will bring a close to a relatively slow year for the labor market in the United States.
For much of the year, there was sluggish growth in labor that was comparable to several of the recession years of the past two decades. The jobs market had slowed before 2025 started, and it did not get much better throughout the year. Changes throughout the year to immigration policy, tariffs, and other economic factors kept companies from hiring at the same rate they had in 2024.
This will be the first real test for the stock market for the year, and the jobs report and tariff decision could drastically shift market momentum. For the past week, stock indices have been close to all-time highs, with the Dow actually setting new records despite moving very little. That could quickly change, though, if these economic factors prove to be unexpectedly negative.
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