Record High for S&P 500: A Response to Strong Jobs Report Amid Fed Rate Worries
U.S. stocks surged to new record highs on Thursday, with the S&P 500 closing at 6,279.35 and the Nasdaq at 20,601.10. Investors celebrated a stronger-than-expected jobs report that eased recession fears.
The Labor Department reported 147,000 jobs added in June, beating economists’ forecast of 110,000. Unemployment fell to 4.1% from an expected 4.3%. The Dow Jones Industrial Average gained 344 points to close at 44,828.53.
The robust employment data provided relief to markets that had been grappling with economic uncertainty. This uncertainty stemmed from trade policy changes and geopolitical tensions. However, the strong jobs numbers also reduced expectations for Federal Reserve interest rate cuts.
With Treasury yields spiking, investors dialed back bets on a July rate reduction. Technology stocks led the rally, with chip design companies Cadence Design Systems and Synopsys surging over 5% after the U.S. government lifted restrictions on exporting semiconductor design software to China.
Cloud monitoring company Datadog jumped 15% after being selected to join the S&P 500 index, replacing Juniper Networks.