Sometimes the markets just want to hear that everything is fine, and Friday delivered exactly that message. Wall Street closed out the week on solid footing after December employment data landed squarely in the Goldilocks zone—not too hot to spook the Federal Reserve, not too cold to trigger recession alarms.

The result? Both the S&P 500 and Russell 2000 climbed to fresh record highs, a signal that this rally has genuine breadth beyond just the usual megacap suspects. By midday in New York, the benchmark index of America's 500 largest companies pushed past 6,970 points, up 0.7%. Meanwhile, the Russell 2000—the scrappier small-cap index that often gets left behind—jumped 1.2% to hit 2,635, marking its fifth gain in six sessions.

The Dow Jones Industrial Average hovered near record territory as well, trading around 49,555. The Nasdaq 100 added 1%, though it's still sitting about two percentage points shy of the peak it hit back in late October. Progress, not perfection.

Jobs Data Delivers the Perfect Balance

The December nonfarm payrolls report showed the economy added 50,000 jobs, slightly below the 60,000 consensus but still confirming the ongoing cooldown in employment growth. Here's the twist that markets liked: the unemployment rate unexpectedly ticked down to 4.4% from 4.5%. After months of gradual deterioration, that backward move suggests the labor market might actually be stabilizing rather than sliding into something worse.

Consumer confidence also offered a bright spot. The University of Michigan reported sentiment climbing to 54 at the start of the year, the highest reading since September. Turns out people are feeling a bit better about things, at least for now.

What does this mean for interest rates? According to the CME FedWatch tool, investors are essentially fully pricing in that the Federal Reserve will hold rates steady at its late-January meeting. But expectations for two rate cuts later in the year remain very much alive. The data was weak enough to keep the rate-cut dream going, but strong enough to avoid panic. Perfect.

Vistra Powers Up on Massive Meta Deal

Among individual movers, Vistra Corp. (VST) absolutely soared after announcing a 20-year agreement with Meta Platforms Inc. (META) to supply more than 2,600 megawatts of zero-carbon energy from nuclear plants in Ohio and Pennsylvania. Shares rallied more than 13% on the news. When Big Tech needs reliable power for its data centers and AI ambitions, nuclear is suddenly looking very attractive.

Intel Corp. (INTC) also jumped 10%, reaching its highest levels since March 2024. The catalyst? President Donald Trump described his recent meeting with CEO Lip-Bu Tan as "a great meeting." Sometimes in markets, that's all it takes—a presidential stamp of approval and suddenly the stock is off to the races.

Commodities Rally Across the Board

Commodities had themselves a day. Silver rebounded sharply, climbing 4% to reach the $80-an-ounce level—a significant psychological milestone. Gold added 0.6% to hit $4,500 an ounce, while copper rose nearly 2%. The metals complex is clearly catching a bid as investors reassess inflation risks and industrial demand.

Crude oil was on track for a weekly gain, with WTI crude eyeing back-to-back 3% advances on Thursday and Friday. That's a solid recovery considering the early-week pressure tied to geopolitical developments in Venezuela.

Bitcoin (BTC) traded flat near $91,000, showing little movement for the week and continuing to lag both equities and precious metals. The crypto hasn't caught fire the way some expected at the start of the year, at least not yet.

Performance Snapshot

By 12:50 p.m. ET, here's where the major indices stood: The Nasdaq 100 reached 25,773.72, up 1%. The S&P 500 hit 6,973.17, gaining 0.7%. The Dow Jones climbed to 49,554.46, up 0.6%. And the Russell 2000 advanced to 2,632.10, posting a solid 1.1% gain.

Looking at the major ETFs, the Vanguard S&P 500 ETF advanced 0.7% to $638.49. The SPDR Dow Jones Industrial Average ETF moved 0.5% higher to $495.06. The Invesco QQQ Trust Series climbed 1.0% to $626.40, while the iShares Russell 2000 ETF traded at $261.29, up 1.2%.

Sector performance showed some interesting divergence. The Utilities Select Sector SPDR Fund outperformed with a 1.6% gain—no surprise given the Vistra news driving excitement around power infrastructure. Meanwhile, the Health Care Select Sector SPDR Fund lagged, finishing flat on the session.

Russell 1000 Movers: Winners and Losers

Among Russell 1000 components, the day's biggest winners included UWM Holdings Corporation, which surged 12.85%. Vistra Corp. gained 10.53% on the Meta deal. Builders FirstSource jumped 11.06%, AST SpaceMobile climbed 9.51%, and SanDisk Corporation rallied 12.90%.

On the flip side, Under Armour fell 6.25%, leading the losers. Reddit, Inc. (RDDT) dropped 5.58%, while Maplebear Inc. declined 5.25%. Lululemon Athletica Inc. (LULU) slipped 4.34%, and DoorDash, Inc. (DASH) retreated 3.55%.

The breadth of Friday's rally—spanning both large-cap and small-cap stocks, with commodities joining the party—suggests investors are feeling genuinely optimistic about the economic backdrop. The jobs data provided just enough reassurance without killing the rate-cut narrative, and that's exactly the kind of setup markets love. For now, the path of least resistance appears to be higher.