Financial Markets Struggle Amid Talk of More Trump Restrictions

Financial markets faced downward pressure on Thursday, driven by several factors:

Cautious sentiment ahead of U.S. employment data and developments in Venezuela.

Weakness in technology and software stocks.

Pullback in basic and precious metals as investors booked profits following recent strong gains.

Market concerns over Trump’s proposed restrictions, including limiting the sale of small homes to individuals rather than companies to reduce housing prices, and reports that defense companies might be restricted from distributing shareholder dividends.

Some positive signals also emerged: U.S. employment data indicated a decline in layoffs, and Trump expressed plans to increase military spending to $1.5 trillion in 2027. These factors helped support modest gains in the Dow Jones Industrial Average.

Investors remain focused on upcoming U.S. employment reports, which have so far shown mixed signals:

ADP private sector employment data for December showed the addition of only 41,000 jobs, below expectations of 50,000.

U.S. Job Openings (JOLTS) for November fell to 7.146 million, the lowest in 14 months, compared to forecasts of 7.648 million.

Layoffs in December dropped 8.3% year-over-year to 35,553, marking the lowest level in 17 months.

Overall, markets are balancing cautious sentiment over policy changes with some signs of labor market stability, creating a mixed environment for investors.