US stocks scale fresh record high after unemployment rate improves

Market Performance - The S&P 500 rose 0.6%, reaching a new all-time high, while the Dow Jones Industrial Average increased by 237 points (0.5%) and also set a record. The Nasdaq composite led with a 0.8% gain [1][16] - The S&P 500 closed at 6,966.28, the Dow at 49,504.07, and the Nasdaq at 23,671.35 [6][16] Company Developments - Vistra's stock surged 10.5% after signing a 20-year agreement to supply electricity from three nuclear plants to Meta Platforms [1][16] - Oklo's shares jumped 7.9% following a deal with Meta Platforms to secure nuclear fuel and advance its project in Pike County, Ohio [2][16] - Homebuilders and housing-related companies saw strong performance after President Trump announced a plan to lower mortgage rates, with Builders FirstSource rising 12%, Lennar up 8.9%, D.R. Horton climbing 7.8%, and PulteGroup increasing by 7.3% [1][16] - General Motors experienced a 2.7% decline after announcing a $6 billion hit to its results for Q4 2025 due to its pullback from electric vehicles, in addition to a $1.6 billion charge from the previous quarter [5][16] - WD-40's stock fell 6.6% after reporting weaker-than-expected profits, attributed to timing issues rather than demand [6][16] Economic Indicators - The U.S. job market showed mixed signals, with fewer hires in December than expected, but an improved unemployment rate, indicating a "low-hire, low-fire" state [1][16] - Consumer sentiment is reportedly strengthening, particularly among lower-income households, with inflation expectations at their lowest in a year, potentially allowing the Fed more flexibility in cutting interest rates [11][16] Bond Market Insights - The yield on the 10-year Treasury eased to 4.16%, while the two-year Treasury yield rose to 3.53%, reflecting mixed expectations for future interest rate changes by the Fed [9][10][16] - Traders have reduced the likelihood of an interest rate cut at the upcoming Fed meeting to 5%, down from 11% the previous day, but still expect at least two cuts within the year [7][8][16] Broader Market Trends - Smaller stocks in the Russell 2000 index rose 4.6% this week, outperforming the S&P 500's 1.6% increase, indicating a shift in market leadership away from Big Tech and AI stocks [12][16] - International markets also saw gains, with the French CAC 40 climbing 1.4% and Japan's Nikkei 225 increasing by 1.6% [13][16]