Wall Street keeps its powder dry ahead of jobs data and Supreme Court decision

• December nonfarm payrolls expected to show modest job growth and slight unemployment decline, with data more critical than usual due to prior reporting disruptions in October and November
• Supreme Court may rule on legality of Trump's broad tariff implementation under national emergency laws, with potential implications for US trade policy and global markets
• Trump directed Freddie Mac and Fannie Mae to purchase $200 billion in mortgage-backed securities aimed at easing housing costs, though full plan details remain unclear

Market Summary: Wall Street Awaits Jobs Data and Supreme Court Ruling

Market Overview:

US stock futures traded flat on Friday, January 9, 2026, as investors adopted a cautious stance ahead of two significant catalysts: December nonfarm payrolls data and a potential Supreme Court decision on Trump-era tariffs.

Key Economic Data:

The December jobs report is expected to show modest employment growth with a slight decline in unemployment. This data carries heightened importance following disruptions that delayed November's report and cancelled October's figures entirely. A softer labor market reading could bolster expectations for interest rate cuts later in 2026.

Supreme Court Decision:

Markets are monitoring a potential ruling on whether former President Trump exceeded legal authority by imposing broad tariffs under national emergency laws. The decision could significantly reshape US trade policy with far-reaching implications for global markets.

Policy Developments:

President Trump directed mortgage giants Freddie Mac (OTCQB:FMCC) and Fannie Mae to purchase $200 billion in mortgage-backed securities aimed at reducing housing costs, though complete details of the plan remain unclear.

Market Implications:

The combination of labor market data and the tariff ruling represents critical inputs for traders assessing Federal Reserve policy trajectory and trade policy direction. A weaker jobs report could accelerate rate cut expectations, while the Supreme Court decision may introduce volatility across trade-sensitive sectors and international markets.

Additional Watchpoints:

Investors are also tracking developments related to Venezuela, though specifics were not detailed in the report.

The cautious pre-market positioning reflects uncertainty around these high-impact events, with traders keeping "powder dry" until greater clarity emerges.