NEW YORK — The S&P 500 closed at a record high in U.S. trading Friday as chipmakers rallied after a softer-than-expected jobs report and investors watched for a U.S. Supreme Court decision on President Donald Trump’s global tariffs. The labor data kept expectations alive for interest-rate cuts later this year, while the court’s delay prolonged uncertainty around the tariffs, Jan. 9, 2026.
S&P 500 record close led by chipmakers
The S&P 500 rose 0.65% to 6,966.28. The Nasdaq composite gained 0.82% to 23,671.35, and the Dow Jones Industrial Average added 0.48% to 49,504.07, according to a Reuters report on the session. For the week, the S&P 500 gained 1.6%.
Chipmakers did much of the lifting. The PHLX Semiconductor Index jumped 2.7% to a record. Lam Research climbed 8.7% after Mizuho raised its price target, and Broadcom rose 3.8%. Intel surged nearly 11% after Trump said he had a “great meeting” with chief executive officer Lip-Bu Tan. Portfolio manager Zachary Hill described investors as “getting granular” while sorting winners and losers across AI-related trades.
Strength broadened beyond tech. Materials and utilities were among the strongest sectors in the S&P 500, and housing-related stocks advanced after Trump said he would push for $200 billion of mortgage-bond purchases aimed at lowering borrowing costs. Power producer Vistra jumped 10.5% after a 20-year agreement to sell electricity from nuclear plants to Meta, the Associated Press reported.
The Labor Department’s report helped shape rate expectations. Employers added 50,000 jobs in December and the unemployment rate dipped to 4.4%, according to the Bureau of Labor Statistics. Slower hiring reinforced expectations that the Federal Reserve will hold rates steady at its next meeting, even as investors continue to look for rate cuts later in 2026.
Tariff case remains a market wild card
Markets were also bracing for legal clarity on tariffs that touch nearly every major trading partner. The dispute centers on whether Trump could use the 1977 International Emergency Economic Powers Act to impose broad “reciprocal” import tariffs without congressional approval. The Supreme Court has signaled it could release opinions when the justices return to the bench Jan. 14, but it does not announce in advance which cases will be decided, according to a Reuters report on the court’s schedule.
The tariff fight has unfolded in stages, leaving businesses and investors watching for a final answer. A U.S. trade court blocked many of the levies in May 2025, finding Trump exceeded his authority under emergency powers, Reuters reported at the time. In August, a federal appeals court said the emergency-power tariffs were illegal but left them in place for now as the dispute continued, the Associated Press wrote. After the justices heard arguments in November, trade analysts warned that even a ruling could leave uncertainty if alternative tariff tools are pursued, according to Reuters.
For investors, the stakes go beyond the courtroom. If the tariffs are struck down, companies could face a messy period of uncertainty around refunds and the next legal path for trade action. If they stand, businesses may have to keep building prices and supply chains around a policy that can still shift through negotiations, exemptions and other trade tools.
With the S&P 500 entering earnings season at record levels and valuations still elevated, traders are watching whether profits can keep pace with the rally. For now, chip momentum and rate expectations are pushing the S&P 500 higher, but tariff uncertainty remains a headline risk.
