logo
Wall Street Rallies on Strong Jobs Data; Nasdaq Hits 20,600, Networking and Software Stocks Lead Gains

Wall Street Rallies on Strong Jobs Data; Nasdaq Hits 20,600, Networking and Software Stocks Lead Gains

Markets surged as U.S. payrolls beat expectations and unemployment dipped to 4.1%. Bond yields rose while networking stocks hit record highs.
The Nasdaq jumped 207.97 points (1%) to 20,601.10, the S&P 500 advanced 51.93 points (0.8%) to 6,279.35 and the Dow climbed 344.11 points (0.7%) to 44,828.53.
The Labor Department said non-farm payroll employment shot up by 147,000 jobs in June after jumping by an upwardly revised 144,000 jobs in May. The report also said the unemployment rate edged down to 4.1% in June from 4.2% in May. The unemployment rate was expected to inch up to 4.3%.
The ISM said its services PMI rose to 50.8 in June from 49.9 in May, with a reading above 50 indicating growth. Networking stocks turned in some of the market's best performances, with the NYSE Arca Networking Index surging by 2.3% to a record closing high. Software stocks were considerably strong, as reflected by the 1.9% gain posted by the Dow Jones U.S. Software Index. Banking, retail and airline stocks was notably strong while housing stocks significantly moved downwards.
Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index inched up by 0.1% and China's Shanghai Composite Index edged up by 0.2%, while Hong Kong's Hang Seng Index fell by 0.6%. Meanwhile, the major European have all moved upwards while the French CAC 40 Index crept up by 0.6%, the U.K.'s FTSE 100 Index and the German DAX Index both climbed by 0.6%.
In the bond market, treasuries have seen continued weakness in reaction to the stronger than expected jobs data. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, has advanced 5.5 bps to 4.34%.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

How America's economy is dodging disaster
How America's economy is dodging disaster

Hindustan Times

time18 minutes ago

  • Hindustan Times

How America's economy is dodging disaster

Economic doom beckoned after President Donald Trump announced his 'Liberation Day' tariffs on April 2nd. Stocks crashed; forecasters predicted a recession within the year. Three months on, the mood is rather more relaxed. Prices in shops are not noticeably higher , unemployment is flat and the S&P 500 index is resurgent , back at all-time highs. Mr Trump's 90-day pause for many of his tariffs , announced a week after Liberation Day to calm markets, had been due to end on July 9th—though this has now been extended to August 1st. Although he has threatened to send letters declaring talks over and tariffs back on, nobody seems too worried. What gives? Was the president right in thinking that tariffs were a smart way to squeeze money from foreigners? Were the doommongers overdoing it? For the moment, businesses, households and financial markets are locked in an elaborate game of wait-and-see. Companies stocked up heavily early in the year in anticipation of tariffs. Indeed, they did so by enough to drag measured GDP growth into the red in the first quarter, as a surge of imports distorted the numbers. Last month customs duties were more than three times as high as the average in recent years These stockpiles will be run down. In many cases, they are already being depleted, meaning that businesses are turning again to imports. Last month customs duties were more than three times as high as the average in recent years (see chart 1). Companies that bring in goods from abroad now face an unpalatable choice: either they can eat the tariffs and accept lower profits, or they can pass the additional costs on to consumers. So far, they have mostly chosen the first option. Bosses are attempting to wait out the president. Why alienate customers with higher prices if Mr Trump might change his mind and render the exercise pointless? Even in the latest consumer-price data, which still shows inflation a little above the Federal Reserve's target of 2%, it is difficult to spot a tariff impact. In fact, doing so requires an economic microscope. Zooming in on the prices of affected categories at a few large retailers, Alberto Cavallo of Harvard Business School and co-authors do discern some slight price rises in both imported goods and their domestically produced competitors (see chart 2). However, such prices have risen by only a percent or two—a far smaller increase than that seen in tariffs. America's effective tariff rate is now at 12%, according to calculations by the Tax Foundation, a think-tank, its highest in nearly a century. Reverting to Mr Trump's initial Liberation Day offering would mean a significant step up. Oddly, though, tariffs may be pushing down prices via another mechanism—by taking a toll on the economy. The Liberation Day drama crushed consumer confidence, possibly softening demand. Until recently, this has been evident only in 'soft' data (surveys and the like). Now signs of it are starting to appear in 'hard' data, too. A recent release showed that household spending fell month-to-month in May. Employment figures for June were strong, but bolstered by government hiring, especially of teachers. Those for the private sector were lower than expected. A running estimate of GDP, produced by the Fed's Atlanta branch, suggests that its core components (private investment and consumption) have fallen from an annualised growth rate of 2-3% at the start of the second quarter to 1% now (see chart 3). Goldman Sachs, a bank, has compared the latest data to previous 'event driven' shocks that led to recessions, and found that today's slowdown is roughly in line with the historical norm. Whether this is the start of something more serious depends, in large part, on how punchy the president feels on August 1st. Without a deadline extension or similar, and especially if Mr Trump doubles down on tariffs, a further slowdown seems likely. As Britain discovered after Brexit—the most recent case of a rich country imposing large trade barriers on itself—elevated uncertainty can by itself be sufficient to suppress business investment for quite some time. And America is now an extremely uncertain country (see chart 4). All the same, a worse slowdown does not necessarily mean a recession. Tariffs are colliding with an economy that is, by any historical or international standard, extraordinarily dynamic. It has been growing at a consistent 2-3% a year since 2022. As a consequence, America is one of the few rich countries that might be able to shoulder even a big hit to growth and still dodge recession. The additional stimulus in Mr Trump's 'Big, Beautiful Bill' is also front-loaded, meaning that it will provide a boost this year and next, which could help obscure the impact of tariffs (even if it also creates an inflationary mess for the Fed to handle). All of this suggests a future in which economists endlessly debate the true impact of the tariffs, while the American public barely notices them, despite having been left poorer. Not a triumph for Mr Trump—but not a disaster either. Editor's note (July 7th 2025): This story has been updated. How-America-s-economy-is-dodging-disaster How-America-s-economy-is-dodging-disaster

Sensex ends flat, Nifty below 25,500; HUL gains 3%
Sensex ends flat, Nifty below 25,500; HUL gains 3%

India Today

timean hour ago

  • India Today

Sensex ends flat, Nifty below 25,500; HUL gains 3%

Benchmark stock market indices closed flat on Monday, as investors traded cautiously given the uncertainty due to Trump tariffs which kept the markets S&P BSE Sensex closed 9.61 points higher at 83,442.50, while the NSE Nifty remained flat to end below 25, Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity said that investors remained cautious ahead of the anticipated U.S. tariff "Market participants appeared reluctant to take aggressive positions, keeping the broader index range-bound. The sentiment was further dampened by global uncertainty, prompting a defensive approach across key sectors," he Unilever topped the gainers with a 3.01% surge, followed by Kotak Mahindra Bank up 1.07%. Trent rose 0.94%, Reliance gained 0.90%, and ITC climbed 0.87%.Bharat Electronics fell the most at 2.46%, followed by Tech Mahindra down 1.83%. UltraTech Cement dropped 1.28%, Maruti Suzuki declined 1.07%, and Eicher Motors slipped 1.00%.- Ends

Tesla shares fall nearly 7% in premarket after Elon Musk's ‘American Party' intent spooks Wall Street investors
Tesla shares fall nearly 7% in premarket after Elon Musk's ‘American Party' intent spooks Wall Street investors

Mint

timean hour ago

  • Mint

Tesla shares fall nearly 7% in premarket after Elon Musk's ‘American Party' intent spooks Wall Street investors

Billionaire Elon Musk's electric vehicle (EV) manufacturing company, Tesla Inc., shares dropped nearly 7% on the pre-market session after Musk's intent to open a political party named the'American Party' spooked US market investors. Tesla shares dropped nearly 7% to $291.96 at 4:01 a.m. (EDT) on the premarket Nasdaq on Monday, 7 July 2025, ahead of the Wall Street open. Shares are currently trading 6.23% lower at $294.59 as of 6:29 a.m. (EDT), compared to $315.35 at the previous market close on Friday, last week. (This is a developing story. Please check back for updates.) Read all stories by Anubhav Mukherjee Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store