The S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) finished Thursday in positive territory, although both ETFs fell from their intraday highs during the last two hours of the trading session.
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In a sign of a resilient labor market, initial jobless claims for the week ended January 9 decreased by 9,000 to 198,000, below the consensus estimate of 215,000. Continuing jobless claims, which trail initial claims by a week, fell by 19,000 to 1.884 million and were also below the expectation of 1.897 million. Initial claims serve as a gauge of layoffs, while continuing claims track the number of people receiving unemployment benefits.
Meanwhile, the U.S. and Taiwan have agreed to a trade deal that will see the self-governing island’s tech firms commit to investing at least $250 billion into semiconductor, AI, and energy operations in the U.S. In addition, the Taiwanese government will provide a minimum of $250 billion in credit guarantees to Taiwanese companies for investing in the U.S. semiconductor ecosystem. In return, the U.S. will drop Taiwan’s tariff rate to 15% from 20% and exempt generic pharmaceuticals, the ingredients used in those drugs, aircraft components, and some natural resources from duties.
Elsewhere, two Fed officials warned of steep consequences if the Fed loses its independence amid a Justice Department probe into Fed Chair Jerome Powell over the central bank’s $2.5 billion renovation of its Washington, D.C., headquarters. “Anything that’s infringing or attacking the independence of the central bank is a mess,” Chicago Federal Reserve President Austan Goolsbee told CNBC’s “Squawk Box.” “You’re going to get inflation come roaring back if you try to take away the independence of the central bank.”
Furthermore, Federal Reserve Governor Michael Barr framed the investigation as an “assault on the independence of the Fed.” Barr stressed that the Fed’s monetary policy decisions take into account inflation and the labor market while casting aside political biases.
Finally, President Trump is considering invoking the Insurrection Act to address mass protests against Immigration and Customs Enforcement (ICE) agents in Minnesota. The federal law allows the president to deploy the U.S. military domestically to help suppress unrest, insurrection, or rebellion. Earlier this week, Minnesota Governor Tim Walz accused the Trump administration of “organized brutality” after an ICE agent fatally shot 37-year-old Minneapolis resident Renee Good.
The S&P 500 (SPX) closed with a 0.26% gain, while the Nasdaq 100 (NDX) returned 0.32%.
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