Investors anticipate pivotal U.S. jobs report; a balanced economy crucial for 2025 stock gains amidst inflation concerns.
The stock market is set for its first major test of the year, with attention on the U.S. jobs report expected next week. Investors are hoping for data indicating a stable economy that supports anticipated equity gains for 2025.
After a strong performance in 2024, where the S&P 500 rose by 23%, stocks experienced some volatility at the year’s end.
The upcoming labor market data will be crucial for assessing economic health and could influence the Federal Reserve’s interest rate strategy.
Anthony Saglimbene, chief market strategist at Ameriprise Financial, noted that investors are looking for confirmation of solid labor trends to maintain a firm economic outlook. Any data indicating unexpected weakness may lead to increased market volatility.
A recent Natixis Investment Managers survey indicated a positive sentiment among institutional investors, with 73% anticipating the U.S. will avoid a recession in 2025. However, recent labor market figures have shown volatility, including job gains that bounced back from a sluggish October.
The December jobs report, due on January 10, is forecasted to show an increase of 150,000 jobs and an unemployment rate of 4.2%. This report is expected to provide a clearer picture of the labor market’s underlying trends.
