US stock markets traded slightly higher on Friday after a mixed US jobs report tempered expectations of an early interest rate cut by the Federal Reserve, without fully closing the door on easing later this year, according to an AP report.In early trading, the S&P 500 rose 0.2% and hovered near its all-time high set earlier in the week. The Dow Jones Industrial Average gained 147 points, or 0.3%, while the Nasdaq composite was largely flat.Treasury yields moved in different directions after the Labor Department said employers hired fewer workers in December than economists had expected, even as the unemployment rate improved and came in better than forecasts. The data reinforced the view that the US labour market may be in a “low-hire, low-fire” phase.The improvement in unemployment prompted traders to scale back expectations of a rate cut at the Fed’s next policy meeting later this month. Markets are now pricing in just a 5% chance of a rate cut, down from 11% a day earlier, according to CME Group data. However, traders continue to expect at least two rate cuts later in the year.“Until the data provide a clearer direction, a divided Fed is likely to stay that way,” Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, said. “Lower rates are likely coming this year, but the markets may have to be patient.”After the report, the yield on the 10-year US Treasury was steady at 4.19%, while the two-year Treasury yield edged up to 3.50% from 3.49%, reflecting shifting expectations for near-term Fed policy.On the corporate front, Vistra surged 14.6% after signing a 20-year agreement to supply electricity to Meta Platforms from three nuclear plants, highlighting rising power demand from data centres supporting artificial intelligence. Oklo jumped 12% after announcing a separate deal with Meta to help secure nuclear fuel and advance its Ohio project.These gains offset losses in some stocks. General Motors fell 1.6% after saying it would take a $6 billion hit to its fourth-quarter 2025 results related to its pullback from electric vehicles, citing weaker demand due to fewer tax incentives and looser emissions norms. WD-40 tumbled 13.7% after posting weaker-than-expected quarterly profit, though the company said the shortfall was due to timing issues rather than demand.Global markets were largely positive. France’s CAC 40 rose 1%, while Japan’s Nikkei 225 climbed 1.6%. Shares of Fast Retailing jumped 10.6% after the Uniqlo owner reported a nearly 34% year-on-year rise in quarterly operating profit and raised its full-year forecast.
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