Non-farm payroll data was mixed, with some positive signs, which boosted US stock futures, but it wasn't enough to prompt the Federal Reserve to take action this month.

U.S. stock index futures extended gains after December jobs growth slightly missed expectations. Nonfarm payrolls rose by 50,000 last month, below the market consensus of 73,000. The unemployment rate fell to 4.4% from a revised 4.5% in November. “The core takeaway from today’s report is that, in the first on-time jobs report in three months, there was more good news than bad,” noted Art Hogan, chief market strategist at B. Riley Wealth, in a report. The data also eased pressure on the Federal Reserve to cut rates again later this month, although the market still expects a rate cut later this year. Jerry Tempelman, vice president of fixed income research at Mutual Capital Management, said that today’s jobs report provided economists with the most insightful glimpse into the labor market in three months due to data disruptions caused by the prolonged government shutdown. “We are watching the high unemployment rate—which reached a four-year high in the November jobs report—and how it might affect the Fed’s meeting at the end of the month.” The weak labor market backdrop supports the decision to cut rates at the end of 2025, but has not raised enough concerns to support further rate cuts this month. (Golden Ten)