We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stocks ended sharply higher on Friday, with the S&P 500 and Dow hitting new all-time closing highs following the release of a positive jobs report that lifted investors’ sentiment. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.5% or 237.96 points, to finish at 49,504.07 points.
The S&P 500 rose 0.7% to close at 6,966.28 points. Tech, materials, utilities and consumer discretionary stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) gained 1.3% and 1.2%, respectively. The Utilities Select Sector SPDR (XLU) also rose 1.2%. The Materials Select Sector SPDR (XLB) gained 1.6%. Nine of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq jumped 0.8% to end at 23,671.35 points.
The fear gauge, CBOE Volatility Index (VIX), was down 2.75% to 14.49. Advancers outnumbered decliners on the S&P 500 by a 1.3-to-1 ratio. A total of 17 billion shares were traded on Friday, higher than the last 20-session average of 16.4 billion.
On the Nasdaq, there were 140 new 52-week highs and 62 new lows. On the S&P 500, there were 48 new 52-week highs and six new lows.
Investors Digest Mixed Jobs Report
The Labor Department reported on Friday that nonfarm payrolls increased 50,000 in December, missing analysts’ expectations of a rise of 73,000. However, the unemployment rate dropped to 4.4% in December from 4.5% in the prior month.
A decline in the unemployment rate and a marginal decline in job additions reinstated investors’ hopes that the economy is still managing to do well and will eventually gain strength.
The nonfarm payrolls data follows the releases of the JOLTS and ADP jobs reports, which also came in weaker than expected. However, despite the initial softness, investors appear to believe that the job market has shrunk but is still holding steady and will eventually recover over time.
Also, homebuilder stocks rose on Friday after President Donald Trump directed his representatives to buy mortgage bonds worth $200 billion to bring down home prices.
This saw the Philadelphia Housing index climb 5.7% to its highest since October. Shares of D.R. Horton, Inc. ((DHI - Free Report) ) jumped 7.4%, while Lennar Corporation ((LEN - Free Report) ) surged 13.9%.
Economic Data
In other economic data released on Friday, U.S. housing starts declined 4.6% in October, the lowest level since May 2020 and below the consensus estimate of 1.3 million.
Building permits in the United States declined 0.2% in October to a seasonally adjusted annual rate of 1.412 million after increasing 6.4% in the prior month.
The University of Michigan’s Surveys of Consumers showed that the consumer sentiment index rose to 54 in January from its final reading of 52.9 in December.
Weekly Roundup
It was a winning week for all three major indexes. The Dow gained 2.3% for the week, while the Nasdaq finished the week 1.9% higher. The S&P 500 closed the week up 1.6%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Jan 12, 2026
U.S. stocks ended sharply higher on Friday, with the S&P 500 and Dow hitting new all-time closing highs following the release of a positive jobs report that lifted investors’ sentiment. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.5% or 237.96 points, to finish at 49,504.07 points.
The S&P 500 rose 0.7% to close at 6,966.28 points. Tech, materials, utilities and consumer discretionary stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) gained 1.3% and 1.2%, respectively. The Utilities Select Sector SPDR (XLU) also rose 1.2%. The Materials Select Sector SPDR (XLB) gained 1.6%. Nine of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq jumped 0.8% to end at 23,671.35 points.
The fear gauge, CBOE Volatility Index (VIX), was down 2.75% to 14.49. Advancers outnumbered decliners on the S&P 500 by a 1.3-to-1 ratio. A total of 17 billion shares were traded on Friday, higher than the last 20-session average of 16.4 billion.
On the Nasdaq, there were 140 new 52-week highs and 62 new lows. On the S&P 500, there were 48 new 52-week highs and six new lows.
Investors Digest Mixed Jobs Report
The Labor Department reported on Friday that nonfarm payrolls increased 50,000 in December, missing analysts’ expectations of a rise of 73,000. However, the unemployment rate dropped to 4.4% in December from 4.5% in the prior month.
A decline in the unemployment rate and a marginal decline in job additions reinstated investors’ hopes that the economy is still managing to do well and will eventually gain strength.
The nonfarm payrolls data follows the releases of the JOLTS and ADP jobs reports, which also came in weaker than expected. However, despite the initial softness, investors appear to believe that the job market has shrunk but is still holding steady and will eventually recover over time.
Chip and Homebuilder Stocks Drive Rally
Semiconductor stocks continued their rally on Friday, with shares of Lam Research Corporation ((LRCX - Free Report) ) jumping 8.7%, while Broadcom Inc. ((AVGO - Free Report) ) rose 3.8%. Lam Research has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, homebuilder stocks rose on Friday after President Donald Trump directed his representatives to buy mortgage bonds worth $200 billion to bring down home prices.
This saw the Philadelphia Housing index climb 5.7% to its highest since October. Shares of D.R. Horton, Inc. ((DHI - Free Report) ) jumped 7.4%, while Lennar Corporation ((LEN - Free Report) ) surged 13.9%.
Economic Data
In other economic data released on Friday, U.S. housing starts declined 4.6% in October, the lowest level since May 2020 and below the consensus estimate of 1.3 million.
Building permits in the United States declined 0.2% in October to a seasonally adjusted annual rate of 1.412 million after increasing 6.4% in the prior month.
The University of Michigan’s Surveys of Consumers showed that the consumer sentiment index rose to 54 in January from its final reading of 52.9 in December.
Weekly Roundup
It was a winning week for all three major indexes. The Dow gained 2.3% for the week, while the Nasdaq finished the week 1.9% higher. The S&P 500 closed the week up 1.6%.