U.S. Stock Market Rises Amid Employment Data and Tariff Decision Anticipation

According to PANews, U.S. stock markets experienced a slight uptick on Friday as the December non-farm employment report did not alter expectations that the Federal Reserve would maintain current interest rates. Traders are closely monitoring a potential Supreme Court decision regarding the legality of tariffs imposed by U.S. President Donald Trump. Cayla Seder, a macro multi-asset strategist at State Street Bank, noted that the labor data indicates a balanced labor market rather than a weak one. The figures are robust enough to suggest a stable economic condition but not strong enough to necessitate a significant shift in monetary policy expectations, which is favorable for the stock market. Regarding the tariff decision, the U.S. Supreme Court is set to rule on the legality of President Trump's comprehensive tariff policy introduced in April. This decision is considered a significant test for U.S. stocks and bonds, as the policy initially caused market turbulence. If the tariffs are deemed unconstitutional, the stock market could benefit from improved profit margins and reduced consumer burdens. Conversely, government bonds might face pressure, as this potential stimulus policy could complicate the Federal Reserve's rate-cutting path and increase the risk of a government budget deficit.