Stock Market Today: Dow, S&P 500, Nasdaq Set to Open Flat; Palantir, Nvidia, Lockheed, More Movers; Jobs Report; Trump Tariffs Ruling

Wall Street saw enough in the latest jobs report to push stocks higher to start Friday’s session.

The Dow Jones Industrial Average rose 173 points, or 0.3%. The S&P 500 was up 0.4%. The Nasdaq Composite was up 0.3%.

The yield on the 2-year Treasury note was up to 3.51%. The 10-year yield was up to 4.19%.

The U.S. economy added 50,000 jobs in December, which was below economists’ expectations at 55,000. On a brighter note, the unemployment rate fell to 4.4%. The 4.6% rate from November was also revised down to 4.5%.

“In essence, we are seeing validation of the idea that job creation is very weak and companies have been letting workers go at a slow pace,” writes Chris Zaccarelli, chief investment officer at Northlight Asset Management. “There aren’t any red flashing lights indicating an imminent recession, but there are plenty of yellow warning lights flashing and there is the risk that we could approach stall speed.”

The report sent odds of a January rate cut to 5% from 11.1%, according to the CME FedWatch Tool.

“Until the data provide a clearer direction, a divided Fed is likely to stay that way,” writes Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. “Lower rates are likely coming this year, but the markets may have to be patient.”

Wall Street will also pay close attention the to Supreme Court. A ruling in the Trump administration’s use of the International Emergency Economic Powers Act to enact tariffs, if released on Friday, could be a major event for stocks.

Sevens Report Research’s Tom Essaye writes that he’ll be watching how the 10-year yield reacts to a decision.

“If the yield jumps on the decision, that will be a new headwind on stocks,” Essaye writes.