Stock Market News Today, 1/8/25 – Indices Close Higher as Investors Digest New Data

Last Updated: 4:10 PM EST

Stock indices finished today’s trading session higher as investors digested a new round of economic data. Indeed, stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.04%, 0.16%, and 0.25%, respectively.

Earlier today, Automatic Data Processing (ADP) released its Nonfarm Employment Change report, which came in worse than expected. In December, nonfarm employment increased by 122,000, whereas expectations were for an increase of 139,000.

However, the Department of Labor put out its Initial Jobless Claims report, which came in better than expected. In the past week, 201,000 people filed for unemployment insurance for the first time. Expectations were for 214,000 individuals.

Separately, at their December meeting, Federal Reserve officials voiced concerns about inflation and the uncertainty surrounding President-elect Donald Trump’s proposed policies, which could affect trade, immigration, and economic growth.

While the Fed recently cut interest rates to a target range of 4.25%-4.5%, they seem to be signaling a slower pace of future rate cuts due to stronger-than-expected inflation readings, resilient consumer spending, and a stable labor market.

First Published: 3:45 AM EST

U.S. stock futures were trading relatively flat on Wednesday morning following a sell-off in major indices in the previous session due to concerns over interest rates. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.18%, 0.14%, and 0.17%, respectively, at 3:26 a.m. EST, January 8.

On Tuesday, the Dow Jones, the S&P 500, and the Nasdaq Composite fell by 0.42%, 1.11%, and 1.89%, respectively. This decline came after Treasury yields surged following the release of the ISM Services Purchasing Managers’ Index (PMI) data.

The report highlighted growth in business activity but also revealed an increase in prices, sparking inflation concerns and uncertainty about the Federal Reserve’s interest rate path.

According to James Knightley, chief international economist at ING, the latest data suggests that the economy is still witnessing robust growth, while inflation remains persistent. Additionally, he believes that concerns about the implementation of tariffs are impacting corporate decisions and behavior.

Looking ahead, investors are awaiting the release of key economic data, including the ADP private payrolls report for December and Initial Jobless Claims data for the week ended January 4, for further insights into the labor market. Also, November’s Wholesale Inventories report and Consumer Credit data for December will be made public today.

Moreover, the release of minutes from the central bank’s December meeting will provide information on the monetary policy outlook.

Moving to corporate earnings, Albertsons (ACI), Acuity Brands (AYI), Jefferies (JEF), and Helen of Troy (HELE) are among the companies scheduled to report their quarterly numbers today.

Investors should note that the market will be closed on Thursday, January 9, 2025, in observance of former President Jimmy Carter’s funeral service. 

Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.685% at the time of writing. At the same time, WTI crude oil futures are trending higher, hovering near $74.79 per barrel as of the last check.

Elsewhere, European indices opened higher on Wednesday morning as investors awaited European Consumer Confidence and Economic Sentiment data points due today.

Asia-Pacific Markets Ended Lower on Wednesday

Most of the Asia-Pacific indices were in the red today after Wall Street’s weak trading session spooked investors.

At the same time, Hong Kong’s Hang Seng Index was down 0.86%. Also, Japan’s Topix and Nikkei indices fell 0.59% and 0.26%, respectively. Further, China’s Shanghai Composite index was up 0.02% while the Shenzhen Component index declined 0.54%.

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