US stocks were little changed on Friday as investors digested a softer-than-expected jobs report and awaited a potential ruling from the US Supreme Court that could have significant implications for trade policy.
The S&P 500 rose 0.2%, while the Nasdaq Composite hovered around the flatline.
The Dow Jones Industrial Average outperformed, gaining 184 points, or 0.4%.
Markets remained on track for weekly gains, with the S&P 500 up about 0.9% week to date, while the Dow and Nasdaq have advanced roughly 1.8% and 1.1%, respectively.
Jobs report paints mixed labour market picture
The December employment report showed that nonfarm payrolls increased by 50,000 last month, according to data released Friday by the Bureau of Labor Statistics.
The figure came in below the Dow Jones estimate of 73,000 and also trailed November’s downwardly revised gain of 56,000.
Despite the weaker job creation, the unemployment rate edged down to 4.4%, compared with economists’ expectations of 4.5%.
Investors viewed the decline as a sign that the labour market, while cooling, remains resilient enough to support continued economic expansion.
A broader measure of labour underutilisation, which includes discouraged workers and those working part-time for economic reasons, fell to 8.4%, down 0.3 percentage point from November.
The household survey showed employment rising by 232,000, even as the labour force participation rate slipped to 62.4%.
Tariff ruling keeps investors on edge
Beyond economic data, attention has turned to a potential Supreme Court ruling on the legality of President Donald Trump’s sweeping global tariffs.
The court has indicated that Friday is an opinion day, when it typically releases decisions in argued cases, though there is no certainty that the tariff case will be addressed.
The case concerns Trump’s so-called “Liberation Day” tariffs and represents the first opportunity for the high court to rule on the president’s authority to impose them.
The uncertainty has kept investors cautious, given the potential impact on trade policy, corporate costs and the broader fiscal outlook.
Prediction market Kalshi currently assigns a 28% probability that the Supreme Court will fully uphold the tariffs as implemented.
Legal experts, however, caution that the ruling does not have to be binary.
The court could narrow the scope of presidential authority, allow some tariffs to stand while striking down others, or limit how the law is applied in future cases.
Morgan Stanley analysts Ariana Salvatore and Bradley Tian said there is “significant room for nuance” in the decision.
They noted that while the court could fully back or fully repeal the tariffs, it also has wide latitude to issue a more tailored ruling.
Trump has repeatedly warned that losing the ability to impose tariffs would be a “terrible blow” to the US, underscoring how central trade policy has become to his economic agenda.
The prospect of a ruling has revived memories of last April, when a tariff announcement sparked a sharp sell-off, sending US stocks down nearly 5% and pushing Treasury yields lower as investors sought safety.
Markets have since rebounded strongly, with US stocks up more than 16% in 2025 and reaching record highs.
Still, analysts say a clear decision could act as a catalyst in either direction.
Wells Fargo chief equity strategist Ohsung Kwon has estimated that striking down the tariffs could lift S&P 500 earnings before interest and taxes by about 2.4% in 2026 compared with last year, an outcome that would likely prompt investors to reprice equities higher.
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