US Stocks: S&P 500, Nasdaq close at records on jobs data; Nvidia market cap nears $4trln
The S&P 500 and Nasdaq closed at record highs, notching a third week of gains. The Dow closed up 0.77%, only 0.41% away from its own record.
Chipmaker Nvidia rose 1.3%, putting its market capitalization at $3.89 trillion. The company is close to overtaking Apple's all-time record and becoming the world's most valuable company in history.
Trading volume was light in a shorter session on the eve of Friday's U.S. Independence Day holiday.
"We are seeing a real bout of irrational exuberance; the stock market is very biased towards optimism," said Kristina Hooper, Chief Market Strategist at Man Group in New York.
"But there's some basis for it. I think there is some level of relief because the jobs report was not as weak as it could have been."
The rally has been fueled by retail investors, who are largely ignoring the inflationary pressure on the horizon, uncertainty around tariffs and "are focused on the tangible, which is today's jobs report," she said.
The S&P 500 gained 51.94 points, or 0.83%, to 6,279.36 and the Nasdaq Composite gained 207.97 points, or 1.02%, to 20,601.10. The Dow Jones Industrial Average rose 344.11 points, or 0.77%, to 44,828.53.
Data showed nonfarm payrolls increased by 147,000 jobs last month, 33% more than the 110,000 jobs forecasted by economists polled by Reuters. Unemployment fell to 4.1% last month, a better result than the 4.3% expected.
Traders quickly priced out chances of an interest-rate cut in July, with the odds of a 25-basis-point reduction in September at 68%, according to CME Group's Fedwatch tool, down from 74% a week ago.
After markets closed, Republicans in the U.S. House of Representatives approved President Donald Trump's massive tax-cut and spending bill, an expected outcome.
The legislation will add $3.4 trillion to the nation's $36.2 trillion debt, according to the nonpartisan Congressional Budget Office, and will also push millions of Americans off health insurance.
Large tax cuts and increased government spending can boost demand in the economy. This can add inflationary pressure, especially when the economy shows signs of strength, such as the latest jobs report.
"Some data points, like the jobs report, are positive and charming. But if we just take a step back, the picture is not that great," said Alex Morris, CEO of F/m Investments, which manages $18 billion in Washington, D.C.
For the week, the S&P 500 gained 1.72%, the Nasdaq rose 1.62%, and the Dow climbed 2.3%. The Russell 2000 Small Cap index rose 3.41%.
"It's kind of perplexing," Morris said. "This feels like that last bull rush before all of the data really comes together."
Tripadvisor climbed 16.7% after the Wall Street Journal reported activist investor Starboard Value had built a stake of more than 9% in the online travel company.
Datadog jumped 14.9% after the cloud security firm was set to replace Juniper Networks on the S&P 500.
Markets closed at 1 p.m. ET. Trading volume on U.S. exchanges was 10.85 billion shares, much lighter than the 17.82 billion average for the full session over the last 20 trading days.
(Reporting by Sabrina Valle In New York, Sruthi Shankar in Bengaluru; Editing by Pooja Desai and David Gregorio)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
an hour ago
- Al Etihad
Stocks and dollar dip as Trump's spending bill passes, trade deal deadline nears
4 July 2025 15:21 LONDON (REUTERS)Stocks slipped on Friday as US President Donald Trump got his signature tax cut bill over the line and attention turned to his July 9 deadline for countries to secure trade deals with the world's biggest dollar also fell against major currencies with US markets already shut for the holiday-shortened week, as traders considered the impact of Trump's sweeping spending bill which is expected to add an estimated $3.4 trillion to the national pan-European STOXX 600 index fell 0.8%.US S&P 500 futures edged down 0.6%, following a 0.8% overnight advance for the cash index to a fresh all-time closing peak. Wall Street is closed on Friday for the Independence Day said Washington will start sending letters to countries on Friday specifying what tariff rates they will face on exports to the United States, a clear shift from earlier pledges to strike scores of individual deals before a July 9 deadline when tariffs could rise are "now just waiting for July 9," said Tony Sycamore, an analyst at IG, with the market's lack of optimism for trade deals responsible for some of the equity weakness in export-reliant Asia, particularly Japan and South the same time, investors cheered the surprisingly robust jobs report on Thursday, sending all three of the main US equity indexes climbing in a shortened session."The US economy is holding together better than most people expected, which suggests to me that markets can easily continue to do better (from here)," Sycamore the close, the House narrowly approved Trump's signature, 869-page bill, which averts the near-term prospect of a US government default but adds trillions to the national debt to fuel spending on border security and the military. Trade the Key Focus in Asia Trump said he expected "a couple" more trade agreements after announcing a deal with Vietnam on Wednesday to add to framework agreements with China and Britain as the only successes so Treasury Secretary Scott Bessent said earlier this week that a deal with India is close. However, progress on agreements with Japan and South Korea, once touted by the White House as likely to be among the earliest to be announced, appears to have broken US dollar index had its worst first half since 1973 as Trump's chaotic roll-out of sweeping tariffs heightened concerns about the US economy and the safety of Treasuries, but had rallied 0.4% on Thursday before retracing some of those gains on of 1100 GMT it was down 0.1% at euro added 0.2% to $1.1773, while sterling held steady at $ US Treasury bond market is closed on Friday for the holiday, but 10-year yields rose 4.7 basis points (bps) to 4.34%, while the 2-year yield jumped 9.3 bps to 3.882%.Gold firmed 0.4% to $3,336 per ounce, on track for a weekly gain as investors again sought refuge in safe-haven assets due to concerns over the US's fiscal position and tariffs. Brent crude futures fell 64 cents to $68.17 a barrel, while US West Texas Intermediate crude likewise dropped 64 cents to $66.35, as Iran reaffirmed its commitment to nuclear non-proliferation. Stock Markets Continue full coverage
Gulf Business
an hour ago
- Gulf Business
Trump's One Big Beautiful Bill explained
Image: Getty Images In July 2025, the US Congress enacted the sweeping One Big Beautiful Bill (OBBB): a landmark legislative overhaul combining permanent extensions of Trump-era tax cuts for individuals and businesses with major spending cuts to welfare programmes and a hefty increase in defense and border security outlays. The bill narrowly cleared its final hurdle in the House of Representatives, positioning it to become law following his signature on July 4. According to the add approximately $3.3–$ 3.4 trillion to federal deficits over the next decade and leave 11–12 million Americans without Medicaid coverage, a claim strongly disputed by the White House. 'President Trump's One Big, Beautiful Bill delivers on the commonsense agenda that nearly 80 million Americans voted for – the largest middle-class tax cut in history, permanent border security, massive military funding, and restoring fiscal sanity. The pro-growth policies within this historic legislation are going to fuel an economic boom like we've never seen before. President Trump looks forward to signing the One Big, Beautiful Bill into law to officially usher in the Golden Age of America,' the VICTORY: The One Big Beautiful Bill Passes U.S. Congress, Heads to President Trump's Desk 🇺🇸🎉 — The White House (@WhiteHouse) From a B2B perspective, this bill sends strong signals: a brighter corporate tax landscape and investment clarity, contrasted with harsh reductions in healthcare and social safety nets. It deliberately reshapes incentives in sectors like renewable energy, defense, manufacturing, and infrastructure, offering strategic opportunities for businesses and investors. With permanent 2017 tax cuts, expanded bonuses, and full 100% expensing, the bill aims to stimulate corporate investment. Yet it simultaneously reverses many climate-related credits, potentially chilling solar and wind projects . Defense and security sectors, by contrast, are set to benefit from a . Lost in the US-centric coverage, however, are ripple effects in the GCC region, from fiscal and investment flows to energy markets and defense partnerships. Gulf sovereign wealth funds with heavy US bond and equity exposure may see altered yields and investment valuations. A return to robust US fossil fuel production and weaker renewables support could benefit GCC oil exporters, even as geopolitical and military collaboration dynamics evolve. Sector-Wise Breakdown Tax & Corporate Sector Permanent tax cuts : Lowers corporate and individual tax rates, increases Business certainty : Enhanced planning through long-term tax predictability, including 100% Section 179 expensing. Trade & remittance levy : Introduces a 1% tax on remittances—raising potential issues for global fund flows . Healthcare & Welfare Drastic Medicaid/SNAP cuts : Deep reductions could strip about 10–11 million low-income Americans of benefits. Eligibility changes : Programmes now include stricter work mandates and state cost-sharing, potentially straining hospital systems. Defense & Border Security Defense boost : +$150 billion for military, including 'Golden Dome' missile defense, drones, and nuclear upgrades. Immigration enforcement : +$150 billion for border control, ICE expansion, detention capacity for up to 1 million deportees annually. Energy & Environment Clean energy rollback : Repeals IRA tax credits, halts renewables momentum, and favors fossil fuels, nuclear, and gas sectors . Energy dominance push : Positions US around nuclear and gas reliability; delays investment in solar and wind . Infrastructure & Tech ATC modernisation : . Spectrum & R&D incentives : 600 MHz spectrum auction planned by 2034; R&D expensing restored to spur innovation . Agriculture & Rural Support for rural hospitals : $50 billion allocated to support struggling healthcare systems in non-urban areas . Agricultural enhancements : Elevated crop insurance, price supports, and disaster relief totalling approximately $60 billion . GCC Impact Snapshot Sovereign wealth & portfolio returns: The tax cuts and increased US debt may drive higher bond yields, squeezing GCC external debt issuances. A new remittance tax could also slightly dent returns for GCC-based investors in the US. Energy market ripples: Rollbacks in clean energy tilt US fuel demands back to oil and gas, supporting GCC hydrocarbon export prices in the short to mid-term . Defense & security ties: Expanded US defense budgets open avenues for GCC collaboration on advanced military and border technologies. Investment climate: Tax clarity may attract more GCC foreign direct investment into US infrastructure and technology sectors, though uncertainty in welfare and fiscal policy might temper risk appetite. Trump's 'One Big Beautiful Bill' epitomises a high-stakes gamble: it locks in permanent tax relief and certainty for corporations and the wealthy, while significantly slashing social safety nets, primarily Medicaid, potentially leaving nearly 12 million Americans uninsured. Although fossil fuel industries benefit from revived incentives, the rollback of clean‑energy credits casts a shadow over green energy's momentum, even as targeted investments in technology, defense, and research & development open long‑term growth pathways, assuming fiscal discipline and stable global trade persist.
Zawya
2 hours ago
- Zawya
Gold poised for weekly gain on dollar weakness, safe-haven demand
Gold prices rebounded on Friday and were heading for a weekly gain, helped by a retreat in the U.S. dollar and safe-haven inflows as U.S. President Donald Trump's deadline for trade deals loomed. Spot gold was up 0.3% to $3,334.47 per ounce, as of 1002 GMT. The precious metal is up about 1.9% this week. U.S. gold futures gained 0.1% to $3,344.70. The dollar index slipped 0.2% and was on track for a second week of decline, making gold less expensive for other currency holders. "The apprehension about the fiscal situation in the U.S. (after Trump's sweeping tax-cut bill passed Congress) and the lingering uncertainty over the approaching July 9 deadline for the tariff issue has boosted safe-haven demand," said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades. Trump announced that Washington will start sending letters to countries on Friday, marking a shift from earlier plans for individual trade deals. On April 2, he announced reciprocal tariffs of 10%-50%, but later reduced most to 10% until July 9 to allow for negotiations. Meanwhile, Trump's tax-cut legislation cleared its final hurdle in Congress on Thursday, making his 2017 cuts permanent, funding his immigration crackdown, and adding new tax breaks promised during Trump's 2024 campaign. Data showed U.S. job growth was unexpectedly solid in June, but nearly half of the increase in nonfarm payrolls came from the government sector, with private industry gains the smallest in eight months as businesses battled rising economic headwinds. "The latest U.S. payroll data supports the case of a slowdown of the economy, but no standstill, slowing the pressure on the Fed to cut interest rates anytime soon," said UBS commodity analyst Giovanni Staunovo. Elsewhere, spot silver edged 0.1% lower to $36.78 per ounce and palladium eased 0.3% to $1,133.21. Platinum rose 0.5% to $1,374.21 per ounce and was heading for its fifth straight week of gains. (Reporting by Brijesh Patel in Bengaluru, additional reporting by Ishaan Arora; Editing by Harikrishnan Nair)
