U.S. Stocks Close Slightly Higher on AI Gains... Investors Await December Jobs Report

Market Remains Calm Despite Maduro's Arrest
Nvidia and Micron Rally, Energy Stocks Fall on Profit-Taking
Focus on December Jobs Report to Shape Interest Rate Outlook

On January 6 (local time), all three major U.S. stock indices closed slightly higher. Investors remained relatively calm despite the arrest of Venezuelan President Nicolas Maduro and are now awaiting the December employment report, scheduled for release on January 9, which is expected to influence the Federal Reserve's future interest rate path.

A trader is working on the floor of the New York Stock Exchange (NYSE) in the United States. Photo by Reuters Yonhap News Agency

As of 10:05 a.m. on the New York Stock Exchange, the blue-chip Dow Jones Industrial Average was up 142.99 points (0.29%) at 49,120.17 compared to the previous trading day. The large-cap S&P 500 Index rose 25.23 points (0.37%) to 6,927.28, while the tech-heavy Nasdaq Index gained 98.081 points (0.42%) to 23,493.902.

By sector, artificial intelligence (AI)-related stocks are driving the market higher. Nvidia is up 1.49%, while Micron and Palantir are showing strong gains of 7.28% and 1.41%, respectively. In contrast, energy stocks, which had rallied the previous day on expectations of Venezuelan oil infrastructure development, turned weaker due to profit-taking. Chevron is down 2.51% and ExxonMobil is down 1.27%.

Investors are focusing more on U.S. macroeconomic indicators than on the situation in Venezuela. Analysts note that whether the AI-driven stock rally continues depends on the pace of the Fed's monetary easing. The December employment report, to be released by the Bureau of Labor Statistics (BLS) under the Department of Labor on January 9, is considered a key variable for future interest rate policy. The market expects nonfarm payrolls to have increased by 57,000 last month, a slowdown from November's 64,000. The unemployment rate is expected to fall by 0.1 percentage point to 4.5% over the same period.

In this context, Thomas Barkin, President of the Federal Reserve Bank of Richmond, stated that policy prospects remain delicately balanced in a macroeconomic environment characterized by rising unemployment and persistently high inflation. He explained that it is difficult to prioritize between the dual mandates of price stability and full employment.

Emilie D?tard, Asset Strategist at Natixis, commented, "We are waiting for the data," and added, "Given that macroeconomic uncertainty in the United States may be greater than in other countries, this is an appropriate time to consider portfolio diversification before the data is released."

Before the December employment report, the U.S. Department of Labor's November Job Openings and Labor Turnover Survey (JOLTs) and the December employment report from private labor market research firm ADP are scheduled for release on January 7. Weekly new unemployment claims are set to be announced on January 8.

Meanwhile, international oil prices, which had risen by the mid-to-high 1% range the previous day following President Maduro's arrest, are weaker today. West Texas Intermediate (WTI) crude is down 0.43% from the previous session at $58.07 per barrel, while Brent crude, the global oil price benchmark, is down 0.58% at $61.4 per barrel.

After declining the previous day due to a preference for safe assets, U.S. Treasury yields are holding steady. The yield on the 10-year U.S. Treasury, a global bond benchmark, stands at 4.17%, while the yield on the 2-year U.S. Treasury, which is sensitive to monetary policy, remains at 3.45%, similar to the previous day.