Markets Brace for Key Labor Data 16/12/2025

HOT stories for today

Market wrap:

• U.S. stocks edged lower Monday as pressure on artificial-intelligence leaders offset gains elsewhere in the market. The S&P 500 slipped 0.16% after trading higher earlier in the session. The Dow Jones Industrial Average fell 41 points, while the Nasdaq Composite dropped 0.6%. Shares of several AI-linked companies weighed on benchmarks, with Broadcom sliding more than 5% and Oracle down over 2%, extending a rotation out of the sector that gathered pace last week. Microsoft also declined. Investors rotated toward more economically sensitive areas, including consumer discretionary and industrial stocks, while health-care shares attracted inflows. “It feels like everyone hates the AI trade right now,” said David Wagner, head of equities at Aptus Capital Advisors.
• Still, he expects market leadership to remain concentrated in the so-called Magnificent Seven, citing the operating leverage investors continue to underestimate. Attention now turns to economic data that could shape market direction. Investors are looking to upcoming labor data for clues on whether a year-end “Santa rally” can take hold or whether further declines lie ahead. November nonfarm payrolls figures and October retail sales data are due Tuesday, but the U.S. government shutdown has delayed their release. Economists surveyed by FactSet expect payroll growth of about 40,000 in November, sharply slower than September’s 119,000 increase. In crypto markets, Bitcoin fell below the closely watched $86,000 support level, pressuring related stocks. Coinbase Global slid about 6.7%.

SpaceX IPO Could Be the Biggest Ever

• SpaceX could be headed for the most extensive initial public offering in history as soon as next year, a deal that would reshape valuations across the aerospace industry and rank as a rare blockbuster for Wall Street. Elon Musk’s space-launch and satellite company is said to be considering an IPO at a valuation of about $1.5 trillion, potentially rivaling or surpassing  Saudi Aramco’s record-setting 2019 debut. The biggest beneficiaries would initially be a small group of private backers, including Ron Baron and Cathie Wood, both of whom have described SpaceX as still early in its value-creation cycle.
• Public investors are seeking indirect exposure through companies such as EchoStar, which holds an equity stake in SpaceX, and through listed space peers that could see their valuations re-rated. Rocket Lab is often cited as the closest public-market analogue to SpaceX’s launch business. At the same time, Planet Labs and Intuitive Machines may benefit from growing interest in space-based data and computing. For Wall Street, the appeal is clear: a SpaceX IPO could generate hundreds of millions of dollars in fees, making it one of the most sought-after mandates in years.

Stocks on the move:

• Zillow (Z) shares tumbled Monday after reports that Google Search (GOOGL) is testing home-for-sale listings directly in its results. The feature, powered by HouseCanary, allows users to view property details and contact agents, mirroring Zillow’s core offerings. Zillow fell as much as 11% as investors weighed the competitive threat.
• KLA Corp. (KLAC): Shares of the semiconductor equipment maker climbed 4%, approaching a 52-week high, after Jefferies lifted its 12-month price target to $1,500 from $1,200. The firm said artificial intelligence continues to drive spending, with wafer fabrication equipment demand accelerating into 2026 and 2027, and highlighted KLA’s “outsized exposure to the leading edge.”
• Immunome (IMNM): The biotech stock jumped 20% after the company reported positive Phase 3 trial results for varegacestat, its treatment for desmoid tumors. Chief Executive Officer Clay Siegall said the data show the drug’s potential to deliver best-in-class results in a convenient, once-daily oral therapy.
• Key players such as Broadcom (AVGO) and Oracle (ORCL) led the declines, with other semiconductor names including AMD (AMD) and Micron Technology (MU) also under pressure.

Watchlist: AVGO, ORCL, NVDA, AMD, LEN, TSLA, COIN

Key Economic Events Today:

EST time

08:30 am: USD Core Retail Sales
08:30 am: USD Non-Farm Employment Change
08:30 am: USD Unemployment Rate
09:45 am: USD Flash Manuf., Services PMI
10:00 am: USD Business Inventories



Earnings

No significant earnings!




The TEFS Analyst team wishes you a successful day!