Stock market today: Dow, S&P 500 edge higher with Trump tariffs, jobs report in focus

US stocks were mixed on Wednesday as investors absorbed a report that President-elect Donald Trump is considering declaring a national economic emergency to pave the way for proposed tariffs. Meanwhile, minutes from the Federal Reserve's December meeting showed "many" officials supported a gradual pace of interest rate cuts in 2025 .

The S&P 500 ( ^GSPC ) closed up more than 0.1% while the Dow Jones Industrial Average ( ^DJI ) added 0.25%, or about 100 points. The tech-heavy Nasdaq Composite ( ^IXIC ) closed just below the flat line.

Meanwhile, the 10-year Treasury yield ( ^TNX ) hovered at 4.7% ahead of a crucial December jobs report set for release on Friday morning.

Trump is looking to the emergency powers to provide a legal basis for his proposed hefty and wide-ranging tariffs , CNN reported . The news jolted markets already on guard for Trump surprises as Inauguration Day nears, bracing for a wave of policy moves and executive orders.

Investors are keeping a close eye on prospects for the economy as they gauge shifts in the chances of slower interest-rate cuts this year.

Stocks sold off and the benchmark Treasury yield spiked on Tuesday as service sector and labor market readings revived concerns over stubborn inflation. The data gives weight to Fed officials' hints that they will lower rates slower than foreseen, and traders now see a less than 50% chance of any easing before May, according to the CME FedWatch tool.

Markets could switch back to viewing strong economic data releases as negative and a spur to "higher for longer" rates, some analysts believe.

US private companies slowed their headcount growth in December, signaling moderating demand for hiring. But the number of Americans making jobless claims fell unexpectedly last week , pointing to a stable labor market, official figures showed .

The data was released a day early as government offices — as well as the stock market — are closed for a national day of mourning for former President Jimmy Carter on Thursday.