Stocks mixed, yields rise ahead of US jobs data; defense shares climb

By Caroline Valetkevitch

NEW YORK, Jan 8 (Reuters) – Major stock indexes were mixed and Treasury yields rose on Thursday ahead of Friday’s key U.S. jobs report, while defense company shares gained amid U.S. President Donald Trump’s plans for a $1.5 trillion military budget.

An aerospace and defense index rose to an all-time high, with European defense shares also hitting a new high. Oil prices also climbed as investors monitored developments in Venezuela.

Over the weekend, U.S. military forces captured Venezuelan President Nicolas Maduro. The White House said on Tuesday that Trump was also discussing options for acquiring Greenland.

Data showed the number of Americans filing new applications for unemployment benefits rose moderately last week, suggesting that layoffs were relatively low at the end of 2025, though demand for labor remained sluggish. 

Traders are pricing in at least two rate cuts from the Federal Reserve this year, although a divided central bank indicated in December there would be only one cut in 2026. The Fed is expected to keep rates steady at its meeting this month.

Friday’s U.S. employment report for December will be key.

The S&P 500 ended the day flat. Technology was down the most among S&P 500 sectors, while energy was up the most. A global stock index was slightly lower.

“There are lots of potential potholes out there, but so far we seem to be skipping our way around them,” said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

“We’re continuing to see rotation back and forth between sectors, but at the base of the market, investors remain constructively positive.”

The Dow Jones Industrial Average rose 270.03 points, or 0.55%, to 49,266.11, the S&P 500 rose 0.53 points, or 0.01%, to 6,921.46 and the Nasdaq Composite fell 104.26 points, or 0.44%, to 23,480.02.

Shares of Nvidia slid 2.2%, Broadcom declined 3.2% and Microsoft dipped 1.1%.

MSCI’s gauge of stocks across the globe fell 2.22 points, or 0.22%, to 1,029.26. The pan-European STOXX 600 index fell 0.19%.

Oil prices climbed after two straight days of declines, settling at a two-week high.

Brent futures rose $2.03, or 3.4%, to settle at $61.99 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $1.77, or 3.2%, to settle at $57.76.

Copper and nickel prices fell as the dollar strengthened and as investors locked in profits.

YIELDS, DOLLAR UP

The yield on benchmark U.S. 10-year notes rose 4.5 basis points to 4.183%.

The yield curve between two- and 10-year notes steepened by around 2 basis points to 69 basis points. 

Venezuela’s default-stricken bonds were finally cooling off following their near 40% surge after the weekend’s events fuelled investor hopes for a massively complex debt restructuring.

The dollar gained against the euro and Swiss franc, with investors awaiting Friday’s labor report.

The dollar index, which measures the U.S. currency against six rivals, was up 0.2% at 98.922 after hitting its highest since December 10.

(Reporting by Caroline Valetkevitch in New York; additional reporting by Marc Jones in London and Purvi Agarwal in Bengaluru; and Rae Wee in Singapore; Editing by Toby Chopra, Bernadette Baum, Cynthia Osterman and Diane Craft)