Wall Street Wavers Ahead of Jobs and Inflation Data as Investors Brace for Key Week

US stocks opened the final full trading week of 2025 on a cautious note, with major indexes wavering ahead of crucial jobs and inflation reports that could shape expectations for Federal Reserve rate policy in 2026.

The S&P 500 slipped 0.2%, the Dow Jones Industrial Average dropped 0.3%, and the Nasdaq Composite lost 0.5%, extending Friday’s selloff as investors rotated out of tech amid growing skepticism about AI-driven valuations.

Tech losses deepened with Broadcom heading for its worst three-day drop since 2020 and Oracle extending its decline to 17%. Meanwhile, iRobot collapsed over 70% after filing for bankruptcy, underscoring how higher rates and tariffs have pressured smaller tech players.

This week’s focus is on backlogged economic data delayed by the government shutdown. The November jobs report is due Tuesday, while inflation data follows Thursday. Traders are also watching October retail sales for signals on consumer resilience.

Market sentiment remains shaped by uncertainty over Trump’s pick to replace Fed Chair Jerome Powell, whose term ends in May. Kevin Hassett and Kevin Warsh remain the top contenders, though reports say Hassett’s candidacy is facing pushback from Trump allies concerned about his closeness to the president.

Fed officials struck a dovish tone Monday, with New York Fed President John Williams saying the latest rate cut leaves the central bank in “a good position,” while Governor Stephen Miran downplayed inflation fears.

Beyond equities, energy stocks fell 1.2% as oil prices declined, while Tesla gained 4% after Elon Musk revealed the company is testing robotaxis without safety drivers.

Investors are now balancing hopes for further Fed easing against signs of a cooling economy. The data due this week could decide whether the market ends 2025 on a strong note, or with another round of volatility.

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