Stocks Teeter on Jobs Report Eve as Bond Yields Plummet

The US stock market began the final full trading week of 2025 on a volatile note, with the S&P 500 index fluctuating as investors awaited the highly anticipated US jobs report. The report, due out on Friday, December 19, is expected to provide crucial insights into the labor market's health and influence the Federal Reserve's interest rate decisions. The S&P 500 index, a benchmark for the US stock market, had a mixed day, with a 0.2% decline to 4,115.62. The tech-heavy Nasdaq Composite index, which has been under pressure in recent sessions, fell 0.5% to 13,444.19. The Dow Jones Industrial Average, meanwhile, edged up 0.1% to 34,511.19. The CBOE Volatility Index (VIX), a measure of market anxiety, rose 2.4% to 16.85. In the bond market, yields on 10-year US Treasury notes fell 4 basis points to 3.84%, a decline that may have contributed to the stock market's volatility. The dollar, which has been strengthening in recent weeks, weakened 0.2% against a basket of six major currencies. The tech sector, which has been under pressure in recent sessions, continued to struggle. Broadcom Inc., a leading semiconductor company, plummeted 12.8% over the past three days, its worst three-day decline since 2020. Oracle Corp., a software giant, extended its multi-session selloff to 17.2%, its worst decline in nearly two years. The rout in cryptocurrencies, which has been ongoing for several weeks, also kept a lid on riskier assets. Bitcoin, the largest cryptocurrency by market capitalization, fell 2.5% to $17,450. Ethereum, the second-largest cryptocurrency, declined 3.3% to $1,250. The US jobs report, which is expected to be released on Friday, December 19, is likely to have a significant impact on the stock market and the Federal Reserve's interest rate decisions. The report is expected to show a modest increase in nonfarm payrolls, with economists forecasting a gain of 150,000 jobs. The unemployment rate is expected to remain steady at 3.7%. The Federal Reserve has been closely monitoring the labor market's health and has been raising interest rates to combat inflation. The Fed's next policy meeting is scheduled for January 28-29, and investors are eagerly awaiting the release of the US jobs report to gauge the Fed's future rate decisions. In conclusion, the US stock market began the final full trading week of 2025 on a volatile note, with the S&P 500 index fluctuating as investors awaited the highly anticipated US jobs report. The report is expected to provide crucial insights into the labor market's health and influence the Federal Reserve's interest rate decisions. The tech sector continued to struggle, with Broadcom Inc. and Oracle Corp. experiencing significant declines. The rout in cryptocurrencies also kept a lid on riskier assets. The US jobs report is likely to have a significant impact on the stock market and the Federal Reserve's interest rate decisions.