The Dow Jones Industrial Average gained 270.03 points, or 0.55%, to 49,266.11, the S&P 500 added 0.53 points, or 0.01%, to 6,921.46 and the Nasdaq Composite dropped 104.26 points, or 0.44%, to 23,480.02

U.S. stock indexes were mixed and Treasury yields rose on Thursday ahead of Friday’s key jobs report, while defence company shares rose amid President Donald Trump’s plans for a $1.5 trillion military budget.

An aerospace and defence index rose to an all-time high, with European defence shares also hitting a new high. Oil prices also jumped as investors monitored developments in Venezuela.

The Dow Jones Industrial Average gained 270.03 points, or 0.55%, to 49,266.11, the S&P 500 added 0.53 points, or 0.01%, to 6,921.46 and the Nasdaq Composite dropped 104.26 points, or 0.44%, to 23,480.02.

Data showed the number of Americans filing new applications for unemployment benefits rose moderately last week, suggesting that layoffs were relatively low at the end of 2025, though demand for labour remained sluggish.

Traders are pricing in at least two rate cuts from the U.S. central bank this year, although a divided central bank indicated in December there would be only one cut in 2026. The bank is expected to keep rates steady at its meeting this month.

Friday’s U.S. employment report for December will be key.

The S&P 500 ended the day flat. Technology was down the most among S&P 500 sectors, while energy was up the most. A global stock index was slightly lower.

There are lots of potential potholes out there, but so far we seem to be skipping our way around them, said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

We’re continuing to see rotation back and forth between sectors, but at the base of the market, investors remain constructively positive, Meckler added.