U.S. markets climbed again on Friday, extending a record‑setting streak as investors weighed a jobs report that offered both caution and optimism.

The S&P 500 advanced 0.6%, surpassing the all‑time peak it had reached earlier in the week. The Dow Jones Industrial Average rose 0.5%, also notching a fresh record, while the Nasdaq composite gained 0.8%.

The rally came despite a U.S. Labor Department update showing that employers added fewer jobs in December than economists had forecast. At the same time, the unemployment rate improved more than expected — a combination that suggests the labor market may be cooling without tipping into recession.

Treasury yields moved unevenly following the report, reflecting uncertainty over whether the Federal Reserve will move ahead with another interest‑rate cut at its upcoming meeting. Traders now see a smaller chance of a January rate reduction, though expectations for cuts later in the year remain strong.

⚡ Big Movers: Tech‑Powered Energy Deals and Housing Stocks
Several standout corporate moves helped lift the broader market:

Vistra
The Texas‑based power company surged 11.7% after striking a 20‑year agreement to supply electricity from three nuclear plants to Meta Platforms, part of a growing wave of energy deals tied to AI‑driven data‑center expansion.

Oklo
The nuclear startup jumped 8.3% after announcing its own partnership with Meta, aimed at securing nuclear fuel and advancing a planned facility in Ohio.

Homebuilders
Housing‑related stocks rallied sharply after President Donald Trump unveiled a proposal to push mortgage rates lower through a $200 billion purchase of mortgage‑backed bonds.

Builders FirstSource soared 11.8%
Lennar climbed 7.9%
PulteGroup rose 7.2%
D.R. Horton gained 6.7%

🚗 Not All Green: GM and WD‑40 Slide
General Motors fell 2.7% after warning it would take a $6 billion charge tied to its retreat from electric‑vehicle production — on top of the $1.6 billion in charges recorded the previous quarter. Softer EV demand, driven partly by reduced tax incentives and looser emissions rules, continues to weigh on the sector.

WD‑40 dropped 5.5% after reporting quarterly earnings below expectations, though the company attributed the weakness to timing issues rather than declining consumer demand.

💵 Bond Market Reaction and Rate‑Cut Expectations
The bond market offered a mixed response:

The 10‑year Treasury yield edged down to 4.17% from 4.19%.
The 2‑year yield, more sensitive to Fed policy expectations, rose to 3.54% from 3.49%.

Traders now assign only a 5% chance of a rate cut at the Fed’s January meeting — down from 11% the day before — but still anticipate at least two cuts later in 2026. Analysts warn that inflation, which remains above the Fed’s 2% target, will determine how quickly policymakers can ease rates.

🛍️ Consumer Sentiment and Global Markets
A University of Michigan survey released Friday showed improving consumer confidence, especially among lower‑income households. Importantly for the Fed, inflation expectations for the coming year appear to be at their lowest level in 12 months.

International markets also posted gains:

France’s CAC 40 rose 1.4%

Japan’s Nikkei 225 jumped 1.6%, boosted by a strong earnings report from Uniqlo parent Fast Retailing, whose quarterly operating profit surged 34% year‑over‑year.