US stocks hit a record high, and the slowing employment data has instead become a sign of a soft landing for the economy

Source: BlockMedia Original Title: [New York Stock Market Close] S&P 500 Hits Record High… “Slowing Employment Signals Soft Landing” Original Link:

US stocks rose across the board on Friday, reaching new all-time highs

The New York stock market maintained expectations of a soft landing after releasing employment data, with major indices closing higher collectively. The S&P 500 index hit a new all-time high during the trading session and also set a record at close, with weekly gains.

The S&P 500 index closed up 44.82 points at 6966.28, a 0.65% increase. The Nasdaq Composite rose 191.33 points to 23671.3, up 0.81%. The Dow Jones Industrial Average increased 237.96 points to 49504.1, up 0.48%. The Russell 2000 index, representing small and mid-cap stocks, rose 1.95 points to 260.22, a 0.76% gain. All three major indices recorded weekly gains, with the S&P 500 up over 1%, and the Dow and Nasdaq each rising about 2%.

Employment Data Becomes Market Driver

The main driver of market sentiment came from the December employment report. U.S. non-farm payrolls increased by 50,000 in December, below the market expectation of 73,000. However, the unemployment rate was 4.4%, a slight month-over-month decrease, lower than the expected 4.5%. Although employment growth slowed, the labor market did not sharply turn, supporting investor confidence.

Another reason this employment data drew attention is that it is the first “normal” data after the record-breaking U.S. federal government shutdown at the end of last year. The Department of Labor previously stated that due to the shutdown, the October employment report was not fully released, and the November report was delayed. The market views this data as somewhat alleviating uncertainty about employment trends.

Analyst Opinions

James Sagrinbeni, Chief Market Strategist at a leading U.S. financial firm, said that based on the combined JOLTS and ADP employment reports, the U.S. employment environment is “slowing but still maintaining resilience,” in a phase of “low hiring and low layoffs.” He pointed out that if employment slows more than expected, investors might feel uneasy, but completing a week within expectations is positive. He also mentioned that “the Fed probably doesn’t need to cut interest rates in January or March.”

Industry Performance

In terms of sectors, real estate-related stocks performed strongly. Following news that the President instructed to purchase mortgage-backed securities to lower mortgage rates, construction and home improvement stocks gained buying interest. D.R. Horton and PulteGroup rose over 6%, Lennar increased over 7%. Home Depot and other home improvement stocks also strengthened.

Market Outlook

Amid mixed signals of slowing employment data and declining unemployment rate, expectations for economic recovery remain intact, and the New York stock market continued its weekly upward trend. The dominance of large-cap stocks since the beginning of the year was confirmed this week, and the historic high of the S&P 500 continues.