Dow jumps more than 300 points, S&P 500 sets new record after strong June jobs report
The Dow Jones Industrial Average advanced 344.11 points, or 0.77%, settling at 44,828.53. The S&P 500 added 0.83% to close at 6,279.35, while the Nasdaq gained 1.02% and ended at 20,601.10. Both the S&P 500 and the Nasdaq Composite also closed at records.
Nonfarm payrolls rose by 147,000 in June, the Bureau of Labor Statistics reported Thursday. That's above the Dow Jones forecast from economists for 110,000 and the upwardly revised 144,000 in May. The unemployment rate also fell to 4.1%, while economists had projected an increase to 4.3%.
The strong jobs report also spurred a spike in Treasury yields and reduced expectations for the Federal Reserve to cut interest rates soon. Fed funds futures traders are currently pricing in a roughly 95% chance that the central bank will hold rates steady at its meeting later this month, per CME Group's FedWatch tool.
'The biggest implication from the employment report would seem to be there's no way the Fed's cutting rates in July, and it's a question mark as to whether rates are cut at all this year,' Jed Ellerbroek, portfolio manager at Argent Capital Management, said in an interview with CNBC.
Thursday's report comes a day after ADP released data showing that private payrolls decreased by 33,000 last month, raising fears that perhaps the economy was starting to stumble under the weight of rapid policy changes out of Washington. Thursday's official government data knocked down that notion.
Meanwhile, after President Donald Trump announced the U.S.-Vietnam trade agreement Wednesday, investors eagerly awaited any potential future deal announcements as the president's early July deadline on his 90-day tariff pause approaches next week. While the market trading at all-time high levels leaves it open to downside, especially if Trump chooses to be 'really tough' in negotiations, Ellerbroek believes the market is ultimately taking a more optimistic view.
'We will see a real tariff impact for a lot of businesses, but the market is going to digest that without too much trouble,' he also said.
Investors are also following along the progress on Trump's tax megabill, which finally passed the Senate Tuesday and has since returned to the House. The bill is now headed for a final vote after the Republican-controlled House advanced the legislation Thursday.
Thursday was a shortened trading session, with the New York Stock Exchange and the Nasdaq closing at 1 p.m. ET. U.S. markets are closed on Friday for Independence Day.
All three major U.S. averages closed out the week in positive territory. The S&P 500 and Nasdaq Composite were up 1.7% and 1.6% week to date, respectively, while the Dow posted a 2.3% gain for the period.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South Wales Guardian
3 hours ago
- South Wales Guardian
Trump signs tax and spending cut bill at White House July 4 picnic
Flanked by Republican legislators and members of his cabinet, Mr Trump signed the multi-trillion dollar legislation outside the White House, and then banged down the gavel that house speaker Mike Johnson gifted him that was used during the bill's final passage on Thursday. Against odds that at times seemed improbable, Mr Trump achieved his goal of celebrating a historic and divisive legislative victory in time for the nation's birthday. Fighter jets and a stealth bomber streaked through the sky over the annual White House Fourth of July picnic as Mr Trump and first lady Melania Trump stepped out onto the White House balcony. 'America's winning, winning, winning like never before,' Mr Trump said, noting last month's bombing campaign against Iran's nuclear programme, which he said the flyover was meant to honour. 'Promises made, promises kept and we've kept them.' The White House was hung with red, white and blue bunting for the regular Fourth of July festivities. The United States Marine Band played patriotic marches — and, in a typical Trumpian touch, tunes by 1980s pop icons Chaka Khan and Huey Lewis. The two separate flyovers bookended Mr Trump's appearance and the band playing the national anthem. Democrats assailed the package as a giveaway to the rich that will rob millions more lower-income people of their health insurance, food assistance and financial stability. 'I never thought that I'd be on the House floor saying that this is a crime scene,' Democratic leader Hakeem Jeffries of New York said during a record-breaking speech that delayed the bill's passage by eight-plus hours. 'It's a crime scene, going after the health, and the safety, and the well-being of the American people.' The legislation extends Mr Trump's 2017 multitrillion-dollar tax cuts and cuts Medicaid and food stamps by 1.2 trillion dollars. It provides for a massive increase in immigration enforcement. Congress' non-partisan scorekeeper projects that nearly 12 million more people will lose health insurance under the law. The legislation passed the House on a largely party-line vote on Thursday. It passed by a single vote in the Senate, where North Carolina Republican Thom Tillis announced he would not run for re-election after incurring Mr Trump's wrath in opposing it. Vice president JD Vance had to cast the tie-breaking vote. The legislation amounts to a repudiation of the agendas of the past two Democratic presidents, Barack Obama and Joe Biden, in rolling back Mr Obama's Medicaid expansion under his signature health law and Mr Biden's tax credits for renewable energy. The Congressional Budget Office estimates the package will add 3.3 trillion dollars to the deficit over the decade and 11.8 million more people will go without health coverage. Mr Trump exulted in his political victory on Thursday night in Iowa, where he attended a kick-off of events celebrating the country's 250th birthday next year. 'I want to thank Republican congressmen and women, because what they did is incredible,' he said. The president complained that Democrats voted against the bill because 'they hate Trump — but I hate them, too'. The package is certain to be a flashpoint in next year's mid-term elections, and Democrats are making ambitious plans for rallies, voter registration drives, attack ads, bus tours and even a multi-day vigil, all intended to highlight the most controversial elements. Upon his return to Washington early Friday, Mr Trump described the package as 'very popular' though polling suggests that public opinion is mixed at best.
North Wales Chronicle
3 hours ago
- North Wales Chronicle
Trump signs tax and spending cut bill at White House July 4 picnic
Flanked by Republican legislators and members of his cabinet, Mr Trump signed the multi-trillion dollar legislation outside the White House, and then banged down the gavel that house speaker Mike Johnson gifted him that was used during the bill's final passage on Thursday. Against odds that at times seemed improbable, Mr Trump achieved his goal of celebrating a historic and divisive legislative victory in time for the nation's birthday. Fighter jets and a stealth bomber streaked through the sky over the annual White House Fourth of July picnic as Mr Trump and first lady Melania Trump stepped out onto the White House balcony. 'America's winning, winning, winning like never before,' Mr Trump said, noting last month's bombing campaign against Iran's nuclear programme, which he said the flyover was meant to honour. 'Promises made, promises kept and we've kept them.' The White House was hung with red, white and blue bunting for the regular Fourth of July festivities. The United States Marine Band played patriotic marches — and, in a typical Trumpian touch, tunes by 1980s pop icons Chaka Khan and Huey Lewis. The two separate flyovers bookended Mr Trump's appearance and the band playing the national anthem. Democrats assailed the package as a giveaway to the rich that will rob millions more lower-income people of their health insurance, food assistance and financial stability. 'I never thought that I'd be on the House floor saying that this is a crime scene,' Democratic leader Hakeem Jeffries of New York said during a record-breaking speech that delayed the bill's passage by eight-plus hours. 'It's a crime scene, going after the health, and the safety, and the well-being of the American people.' The legislation extends Mr Trump's 2017 multitrillion-dollar tax cuts and cuts Medicaid and food stamps by 1.2 trillion dollars. It provides for a massive increase in immigration enforcement. Congress' non-partisan scorekeeper projects that nearly 12 million more people will lose health insurance under the law. The legislation passed the House on a largely party-line vote on Thursday. It passed by a single vote in the Senate, where North Carolina Republican Thom Tillis announced he would not run for re-election after incurring Mr Trump's wrath in opposing it. Vice president JD Vance had to cast the tie-breaking vote. The legislation amounts to a repudiation of the agendas of the past two Democratic presidents, Barack Obama and Joe Biden, in rolling back Mr Obama's Medicaid expansion under his signature health law and Mr Biden's tax credits for renewable energy. The Congressional Budget Office estimates the package will add 3.3 trillion dollars to the deficit over the decade and 11.8 million more people will go without health coverage. Mr Trump exulted in his political victory on Thursday night in Iowa, where he attended a kick-off of events celebrating the country's 250th birthday next year. 'I want to thank Republican congressmen and women, because what they did is incredible,' he said. The president complained that Democrats voted against the bill because 'they hate Trump — but I hate them, too'. The package is certain to be a flashpoint in next year's mid-term elections, and Democrats are making ambitious plans for rallies, voter registration drives, attack ads, bus tours and even a multi-day vigil, all intended to highlight the most controversial elements. Upon his return to Washington early Friday, Mr Trump described the package as 'very popular' though polling suggests that public opinion is mixed at best.
The Independent
5 hours ago
- The Independent
How Trump's tariffs could affect Fourth of July fireworks
Tariffs introduced by the Trump administration on Chinese fireworks are causing significant disruption for US suppliers and are expected to worsen by 2026. With approximately 99 percent of US fireworks imported from China, businesses have struggled to navigate wildly fluctuating tariff rates, which have varied from 10 percent to 145 percent. The industry anticipates severe challenges for the 250th anniversary of America's founding in 2026, as high demand will coincide with ongoing supply chain issues and the impact of these tariffs. Fireworks industry figures, including the National Fireworks Association, warn that low profit margins and production disruptions could jeopardize future celebratory displays. The White House has defended the tariffs, asserting that patriotism should not rely on 'cheap foreign-made firecrackers,' despite Trump's personal enjoyment of fireworks and a past exemption for them.
