Key U.S. equity averages finished mixed on Friday, but the market's benchmark ( SP500 ) ended at a record high, with odds of a December rate cut strengthening after November's U.S. jobs report pointed to a slowing yet solid labor market. Nasdaq Composite ( COMP:IND ) joined the S&P 500 ( SP500 ) in locking in new closing highs. The moves came after the Labor Department's November nonfarm payrolls came in at 227K, exceeding the 211K consensus estimate. The unemployment rate rose to 4.2% from 4.1%, in-line with forecasts. The “labor market remains in a good position," San Francisco Fed President Mary Daly said Friday. The tech-focused Nasdaq Composite ( COMP:IND ) finished Friday +0.8%, and the S&P 500 ( SP500 ) +0.3%. The Dow ( DJI ), meanwhile, -0.3%, with Nvidia ( NVDA ) and Chevron ( CVX ) among losing stocks. For the week, the Nasdaq popped up +3%, and the S&P 500 ( SP500 ) picked up 1%. The Dow ( DJI ), however, fell -0.6% . “The Nasdaq-100 ( NDX ) and the S&P 500 continue to make new highs, further irritating wrong-headed bears and providing more dopamine to addled bulls," Alex King, investing group leader of Cestrian Capital Research , told Seeking Alpha. November's nonfarm payrolls rebounded from October's +12K print that hit by hurricanes and a workers' strike at Boeing ( BA ). "Looking at the three market average of ~ 160k jobs, we see a healthy, although weakening, job market," Chris Zaccarelli, chief investment officer at Northlight Asset Management, said Friday. "Despite the strong headline number this morning, the Fed is likely to note the overall slowing in the job market and cut rates by 25 bps in two weeks, unless the next CPI report is white hot," he said. The November Consumer Price Index inflation report is due next week. Odds for a quarter-point rate cut at the Fed's December 17-18 meeting jumped to ~85% on Friday, from Thursday's 71% probability, according to the CME FedWatch tool . This year's advances for large-cap stocks have been aided by the Federal Reserve starting its rate-cutting cycle that investors expect will continue this month. The S&P 500 ( SP500 ) has bulked up nearly 28% this year. "We are very focused on remaining dead inside in order to take advantage of the coming twists and turns in the market," King said. "We continue to look upwards into year-end but note a slew of important technical resistance levels coming up; we think it is time to be nimble if needed.” In the fixed-income market Friday, the 10-year Treasury yield ( US10Y ) lost 2 basis points to 4.15%, and the 2-year yield ( US2Y ) was down 4 basis points at 4.09%. The Fed has cut interest rates by 75 basis points this year to 4.5%-4.75%. Cleveland Fed President Beth Hammack said Friday she favors taking a slow pace in adjusting interest rates. "Moving slowly will allow us to calibrate policy to the appropriately restrictive level over time given the underlying strength in the economy," she said Friday at the City Club of Cleveland, according to prepared remarks. In other economic news, consumer sentiment drifted up in December. The University of Michigan's U.S. Consumer Sentiment report came in at 74.0 versus 73.0 consensus, and 71.8 in November. Four sectors on the S&P 500 ( SP500 ) rose, paced by Consumer Discretionary +2.4%. Energy -1.6%, down with six other groups. Among active stocks, Lululemon ( LULU ) +15.9%, the best S&P 500 ( SP500 ) performer after the yoga clothing maker raised its FY24 guidance above expectations and increased its share buyback program by $1B. DocuSign ( DOCU ) +27.9% and Ulta Beauty ( ULTA ) +9% on strong quarterly results. UnitedHealth Group ( UNH ) -5.1%, the steepest decliner on the S&P 500 ( SP500 ) and the ( DJI ), deepening a weekly loss after Wednesday's murder of Brian Thompson, head of its health benefits unit . In the crypto market, bitcoin ( BTC-USD ) traded above $101,000 after this week's rise above $100K for the first time ever . More on the markets Dividend Roundup: Disney, Microsoft, Dell Technologies, Alphabet, and more Vanguard's 2025 economic outlook: Rate cuts, steady growth, and moderating inflation Where Will S&P 500 Be At The End Of 2025? Let's Predict This May Be The Most Expensive Stock Market Ever The $2T Question And S&P 500's Cautionary Risk Premium
