U.S. Labor Market Expansion Moderated In December, Supreme Court's Tariff Ruling In Focus

Barry Adams
09 Jan, 2026
New York City

Stocks on Wall Street lacked momentum on Friday ahead of a jobs report and a potential U.S. Supreme Court ruling on trade tariffs. 

The S&P 500 index edged up a fraction, and the tech-heavy Nasdaq Composite inched lower as investors rotated away from high-flying artificial intelligence stocks. 

 

U.S. Job Growth Slowed In December and 2025 

December nonfarm payrolls growth slowed to 50,000 as healthcare and professional services continue to expand but showed little or no change in other industries, including mining, manufacturing, and construction.  

However, payroll data were revised downwards for the months of October and November. 

The change in total nonfarm payroll employment for October was revised down by 68,000, from a contraction of 105,000 to 173,000, and the change for November was revised down by 8,000, from a gain of 64,000 to 56,000. 

With these revisions, employment in October and November combined is 76,000 lower than previously reported.

The jobless rate was little changed at 4.4%, and the average hourly wage gained 3.8% from a year ago to $37.02. 

For the full year 2025, payroll employment increased 584,000, or about a monthly increase of 49,000, and less than the increase of 2.0 million in 2024. 

The U.S. Supreme Court is likely to strike down the Trump administration's global tariffs, confirming rulings from two lower courts. 

The apex court sent mixed signals during cross-examination of the U.S. solicitor, and most court trade policy analysts are hoping that the court's ruling could force the Trump administration to levy new tariffs using a different set of rules. 

The adverse ruling from the court could also impact the financial position of the U.S. federal government, as most of the tariff revenue has been used for government spending and interest payments. 

 

U.S. Movers 

General Motors decreased 0.9% to $84.49 after the company disclosed a $7.1 billion charge in the fourth quarter of 2025 linked to its electric vehicle operations and restructuring in China. 

Tilray Brands soared 10% to $10.0, and the cannabis company reported record revenue in the fiscal second quarter. 

Net revenue increased 3% to $217.5 million from $211 million, net loss improved to $43.5 million from $85.3 million, and diluted loss per share improved to 41 cents from 99 cents a year ago. 

Costco Wholesale Corp. extended its two-day gain to 5% and rose to $919.71 after the company's December sales rose. 

U.S. core comparable store sales rose 6.3% in December, on top of 9.8% in the month a year ago, indicating solid performance over two years despite the tough comparison.