New York Stocks Mixed Early as Market Seeks Direction Amid Slowing Jobs and Strong Services Data

Dow Turns Lower After Early Gains
November Job Openings Hit Lowest Level in a Year
December Private Employment Falls Short of Expectations
Service Sector Outperforms Forecasts in December
International Oil Prices Weaken After Trump's "Securing Venezuelan Crude" Remarks

The three major U.S. stock indexes showed mixed movements on January 7 (local time) in New York. After opening higher, the market struggled to find clear direction as strong service sector data contrasted with weaker-than-expected employment figures. International oil prices declined after President Donald Trump announced that the United States would secure up to 50 million barrels of Venezuelan crude oil for supply.

Traders are working on the trading floor of the New York Stock Exchange (NYSE) in the United States on the 7th (local time). Photo by AFP

As of 11:22 a.m. on the same day at the New York Stock Exchange, the Dow Jones Industrial Average, which is focused on blue-chip stocks, was down 174.79 points (0.35%) from the previous trading day, standing at 49,287.29. The S&P 500 Index, which tracks large-cap stocks, rose by 5.86 points (0.08%) to 6,950.68, while the tech-heavy Nasdaq Index climbed 106.254 points (0.45%) to 23,653.427.

By sector, energy stocks were strong. Valero Energy surged by 4.17%, and Marathon Petroleum was up by 1.17%. Reports that Venezuelan crude oil sales may resume indefinitely and that U.S. sanctions could be eased boosted investor sentiment. Chevron rose by 0.15%. In contrast, ExxonMobil was down by 1.03%. Among technology stocks, Nvidia gained 1.06%, while Micron, which had jumped more than 10% the previous day, declined by 0.88% due to profit-taking.

Despite last weekend's U.S. airstrikes on Venezuela and the news of the arrest of President Nicolas Maduro and his wife, investors remained largely unfazed. The New York stock market had continued its upward trend for two consecutive days since the opening of the week.

Angelo Kourkafas, Senior Global Investment Strategist at Edward Jones, analyzed, "The market's response to the Venezuela news shows a gap between new headline risks and actual price movements," adding, "While the arrest of President Maduro is a geopolitically significant event, it does not have an immediate impact on the oil supply that the market truly cares about." He further noted, "The cyclical rally that began earlier this week reflects favorable fundamentals, including expectations that earnings momentum will spread both within and beyond large technology stocks."

Investors paid more attention to economic indicators that could influence the future monetary policy path of the Federal Reserve than to geopolitical tensions surrounding Venezuela. The data released that day showed mixed signals, with the service sector performing strongly, while the pace of employment recovery fell short of expectations.

According to the U.S. Department of Labor, the number of job openings in November of last year was 7,146,000. This figure fell short of the market forecast compiled by Bloomberg (7.6 million) and marked the lowest level in about a year. The October job openings figure was revised downward from 7,670,000 to 7,449,000, and the November number was even lower. Both new hires and layoffs decreased. This is interpreted as a sign that companies are becoming more cautious about hiring amid ongoing policy uncertainties, including tariffs.

Private employment data released on the same day also showed a recovery, but the pace was slower than expected. According to ADP, a U.S. private labor market research firm, the number of new jobs in the private sector increased by 41,000 in December 2025 compared to the previous month. After a decrease of 29,000 in November, the number returned to growth within a month, but the increase fell short of the Dow Jones forecast of 48,000. This heightened concerns about a gradual cooling of the labor market.

In contrast, the U.S. service sector showed unexpectedly strong performance. The Institute for Supply Management (ISM) announced that the Non-Manufacturing Purchasing Managers' Index (PMI) for December was 54.4. This was up 2.2 points from the previous month (52.2) and significantly exceeded the market expectation of 52.6. A PMI above 50 indicates economic expansion, while below 50 signals contraction.

This week, market attention is shifting to the December employment report from the Bureau of Labor Statistics (BLS), which reflects both private and public sector employment. According to Dow Jones forecasts, nonfarm payrolls are expected to have increased by 73,000 last month, surpassing the 64,000 increase in November. The unemployment rate is projected to be 4.5%, down 0.1 percentage points from the previous month. This report is scheduled to be released in two days, on January 9.

U.S. Treasury yields declined, especially for longer-term bonds. The benchmark 10-year U.S. Treasury yield fell by 3 basis points (1bp = 0.01 percentage points) from the previous day to 4.14%. The 2-year Treasury yield, which is sensitive to monetary policy, hovered around the previous day's level at 3.47%.

International oil prices weakened following President Trump's remarks about securing Venezuelan crude oil. West Texas Intermediate (WTI) crude fell by 1.19% from the previous session to $56.45 per barrel, while Brent crude, the global oil price benchmark, dropped by 0.66% to $60.3 per barrel.