GLOBAL-MARKETS-Stocks edge down, yields rise ahead of US jobs report; defense shares gain

By Caroline Valetkevitch and Marc Jones

NEW YORK/LONDON, Jan 8 (Reuters) - Major stock indexes mostly eased and Treasury yields rose on Thursday ahead of Friday's key U.S. jobs report, while defense company shares jumped amid U.S. President Donald Trump's plans for a $1.5 trillion military budget.

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

Over the weekend, U.S. military forces captured Venezuelan President Nicolas Maduro. The White House said on Tuesday that Trump was also discussing options for acquiring Greenland.

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 labor remained sluggish.

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

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

“From an interest rate standpoint, it's not clear how Fed policy should or will react to that and what it means about the economic outlook more than a couple of months forward,” said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott in Philadelphia.

The Dow Jones Industrial Average .DJI rose 171.04 points, or 0.35%, to 49,167.35, the S&P 500 .SPX fell 6.83 points, or 0.09%, to 6,914.96 and the Nasdaq Composite .IXIC fell 168.65 points, or 0.71%, to 23,420.08.

MSCI's gauge of stocks across the globe .MIWD00000PUS fell 2.86 points, or 0.28%, to 1,028.62.

The pan-European STOXX 600 .STOXX index fell 0.21%.

The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.08% to 98.81.

The euro EUR= flirted with its eighth straight drop against the dollar.

The yield on benchmark U.S. 10-year notes US10YT=RR rose 4.1 basis points to 4.179%, from 4.138% late on Wednesday.

Venezuela's default-stricken bonds USP17625AB33=TE were finally cooling off following their near 40% surge after the weekend's events fuelled investor hopes for a massively complex debt restructuring.

U.S. crude CLc1 rose 1.8% to $57.00 a barrel and Brent LCOc1 rose to $61.13 per barrel, up 1.95% on the day. Gold prices were nearly flat.