The S&P 500 (^GSPC +0.85%) rose 0.65% to 6,966.28, the Nasdaq Composite (^IXIC +0.83%) gained 0.81% to 23,671.35, and the Dow Jones Industrial Average (DJINDEX: ^DJI) added 0.48% to 49,504.07 as investors embraced a soft-landing narrative.
Market movers
Chip strength led the tape, with Intel (INTC +2.43%) rallying after positive words from Donald Trump and a stronger outlook for the AI and semiconductor cycle. Mega-cap techs such as Alphabet (GOOGL +1.04%) and Apple (AAPL +0.00%), plus AI software name Palantir Technologies (NYSE: PLTR), all gained slightly despite ongoing valuation concerns.
What this means for investors
The S&P 500 hit an intraday high today after jobs data showed the economy had added fewer jobs than expected. With a slight dip in unemployment, the Bureau of Labor Statistics report reinforced expectations that the Fed would hold rates steady this month. Indeed, CME Group FedWatch now puts the likelihood of a January rate cut at just 5%.
Intel gained over 10% after a social media message from President Trump spoke of a "great meeting" with CEO Lip-Bu Tan. Yesterday's meeting in the White House boosted the chipmaker. Meanwhile, investors will be watching major banks as they report Q4 earnings next week. Starting with JPMorgan Chase (JPM 1.61%) on Tuesday, the results will give insights into consumer sentiment.
Finally, today's expected Supreme Court tariff ruling was delayed until Jan. 14. Reuters reported that justices would not make a ruling on the legality of tariffs until next week.
