This week's market focus: The U.S. December non-farm payroll report is imminent, and the Federal Reserve's meeting minutes attract attention

Zhitong
2025.01.06 00:33
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This week, the market is focused on the U.S. December non-farm payroll report and the Federal Reserve's meeting minutes. It is expected that the non-farm payrolls will slow to 153,000 new jobs, with the unemployment rate remaining at 4.2%. In addition, the ADP employment figures and JOLTs job openings data will also be released, which may affect the Federal Reserve's interest rate cut expectations. The Federal Reserve's meeting minutes will reveal the possibility of a policy shift, which will impact market sentiment

According to Zhitong Finance APP, as the first complete week of 2025 arrives, the market is seeking direction after the absence of a "Christmas rally." Investors will focus on the important economic data to be released soon, as well as potential signals from the Federal Reserve's meeting minutes. It is worth mentioning that the U.S. stock market will be closed on Thursday (January 9) to mourn former President Jimmy Carter.

Economic Data

In terms of economic data, the most noteworthy report this week is the U.S. non-farm payroll report for December, which will be released on Friday. The market currently widely expects that the U.S. non-farm payrolls will slow to an increase of 153,000 jobs in December, while the unemployment rate is expected to remain at 4.2%.

The strength of the labor market is one of the key factors in the Federal Reserve's policy decisions. Other data that will also reflect the state of the U.S. labor market includes the U.S. ADP employment numbers for December, which will be released on Wednesday and is often referred to as "little non-farm." Additionally, the U.S. JOLTs job openings for November will be released on Tuesday, and a significant reduction in job openings may trigger speculation about a rate cut by the Federal Reserve.

Meanwhile, key service sector data will be released on Monday and Tuesday. The final value of the U.S. SPGI Services PMI for December will be released on Monday, and the U.S. ISM Non-Manufacturing PMI for December will be released on Tuesday. Given the service sector's largest share in the U.S. economy, this data will provide crucial information for understanding the momentum of the U.S. economy. After mixed signals in recent months, any significant deviation from expectations could impact market sentiment.

Federal Reserve Meeting Minutes

The Federal Reserve's meeting minutes from December will be released on Wednesday. Investors will closely analyze these minutes to understand the Fed's thoughts on potential policy changes. Any hints regarding the timing or pace of rate cuts could trigger significant market volatility.

Additionally, Federal Reserve Governor Lisa Cook, Christopher Waller, Richmond Fed President Tom Barkin, and Philadelphia Fed President Patrick Harker will speak this week.

Corporate Earnings and Other Developments

This week, Delta Air Lines (DAL.US), Jefferies (JEF.US), Albertsons (ACI.US), and Walgreens Boots Alliance (WBA.US) will release their latest quarterly earnings reports.

Furthermore, NVIDIA (NVDA.US) CEO Jensen Huang will deliver the opening keynote speech at the 2025 Consumer Electronics Show (CES) in Las Vegas on Monday. Many analysts believe that this event could drive up the stock price of this artificial intelligence chip giant

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