What to know this week

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US stocks have has fallen departed the first full week of 2025.

Over the past five trading sessions, the S&P 500 is down more than 1.5%, while the Nasdaq Composite is down nearly 2%, while the Dow Jones Industrial Average is down about 1.5%.

Investors will be greeted by an important round of labor market data next week, with Friday morning’s Bureau of Labor Statistics jobs report serving as the week’s most important release. Updates on job openings and private wage growth, as well as data on service sector activity, are also on the schedule.

The coming week will provide the final picture of the labor market before the Fed’s next meeting on January 30-31.

In corporate news, investors will be watching for key announcements from technology companies such as Nvidia (NVDA:) during the Consumer Electronics Show. Meanwhile, Delta (DALL:) and Constellation brands (STZ:) is expected to report quarterly results.

It The labor market froze until 2024but the Federal Reserve is confident of its trajectory.

At his year-end press conference on December 18, Fed Chairman Jerome Powell described the labor market as “good” overall, noting that “risks are receding.” which appeared in the summer of 2024 as the increase in the unemployment rate “appears to have abated”.

“The labor market is weaker now than it was before the pandemic, and it’s clearly still cooling, so far, gradually and steadily,” Powell said.

Economists expect the data to show a more gradual cooling.The December jobs report is expected to show that the US labor market added 153,000 jobs in the month, up from 227,000 in November, while the unemployment rate is expected to hold at 4.2 percent level.

“The labor market is on solid footing, but employment growth has slowed and overall labor market conditions have cooled in 2024,” Morgan Stanley’s US economist Sam Coffin wrote in a note to clients softening as it seemed last summer.”

As of Friday afternoon, markets were pricing in just an 11% chance the Fed will cut rates at its January meeting. according to the CME FedWatch tool.

The CES tech conference kicks off Monday with a keynote from Nvidia CEO Jensen Huang, and an analyst Q&A is scheduled for Tuesday.

Shares of Nvidia fell more than 1% after the earnings call on Nov. 20 amid concerns over delays in shipments of its new Blackwell chip. Nvidia shares still finished 2024 more than 150% increase.



 
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