Unemployment, Supreme Court surprises may shake stocks Friday

Market Sentiment - Markets are sensitive to uncertainty, performing best when trends are clear and outcomes are understood [1] - A recent reversal in market gains indicates potential buyer exhaustion, often driven by institutional sellers [2][3] Economic Indicators - Upcoming events include the Bureau of Labor Statistics Employment Situation Summary and a Supreme Court ruling on tariffs, both of which could significantly impact market perceptions [2][4] - The Federal Reserve is closely monitoring unemployment figures, which could influence future interest rate decisions [4] Unemployment and Inflation - Unemployment rose to 4.6% in November, up from 4% in January, while layoffs surged by 54% to over 1.1 million [5] - Inflation, as measured by the Consumer Price Index, increased from 2.3% in April to 3% in September before decreasing to 2.7% in November [4] Federal Reserve Actions - The Federal Open Market Committee cut interest rates by a quarter percentage point at the last three meetings of 2025 due to rising unemployment concerns [5] - Future rate cuts may depend on the unemployment rate's movement in December, with a hawkish tilt observed from Fed Chairman Jerome Powell [6]