Stock Market Live December 16: S&P 500 (SPY) Down on Payroll Data

"Nonfarm payrolls grew more than expected in November, coming in at 64,000. That was also better than the expectations of 45,000. The unemployment rate did jump to 4.6% as expected. In addition, an October count showed that payrolls were down by 105,000, which was preceded by an increase of 108,000 in September. Average hourly earnings were up just 0.1% for November, below the estimate for 0.3%, and were up 3.5% from a year ago, the smallest annual gain since May 2021."

"After the Federal Reserve cut interest rates by another quarter point, Philadelphia Federal Reserve President Anna Paulson says unemployment is a bigger economic threat than inflation, which could open the door for more interest rate cuts in the new year. "That's partly because I see a decent chance that inflation will come down as we go through next year," the central banker said, as quoted by CNBC."

"There's also still time to go long copper. Copper prices could test higher highs on supply concerns. For one, traders have been boosting copper shipments to the U.S. amid speculation the Trump Administration could impose new import tariffs in the new year, which could squeeze supply in other regions, as noted by The Wall Street Journal. Two, we have to remember that demand for copper has been growing even faster, thanks to the artificial intelligence boom in data centers and renewable energy."

Major U.S. indices edged lower after November payroll figures, with Dow futures down 19, the S&P down about eight, and the Nasdaq falling 47 points while SPY was flat. Nonfarm payrolls rose 64,000 versus 45,000 expected and the unemployment rate increased to 4.6%; October payrolls were revised down by 105,000 after a September gain of 108,000. Average hourly earnings rose 0.1% for November and 3.5% year-over-year, the smallest annual increase since May 2021. The Fed cut rates another quarter point, and a Fed official emphasized unemployment as a larger threat than inflation. Gold moved higher with some firms targeting $5,000-plus, while copper faced supply risks amid tariff-driven shipment shifts and accelerating demand from AI and clean-energy investment.

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