July 3 – U.S. stocks climbed Thursday, with the S&P 500 and Nasdaq Composite hitting fresh peaks after a stronger?than?forecast June jobs report, according to a Thursday report from the Bureau of Labor Statistics.
The S&P 500 rose about 0.5%, while the Nasdaq gained 0.6%. The Dow Jones Industrial Average added 222 points, or 0.5%.
Nonfarm payrolls increased by 147,000 in June, topping economists’ 110,000 forecast and May’s upwardly revised 144,000. The unemployment rate fell to 4.1% versus a projected rise to 4.3%.
However, the robust labor data also sent Treasury yields higher, tempering gains as traders scaled back expectations for an imminent Federal Reserve rate cut. Fed funds futures now imply about a 93% chance of rates holding steady at next week’s meeting, per CME Group’s FedWatch tool.
Once again, the labor market shows resilience, said Karen Manna, investment director at Federated Hermes. Markets may begin to reprice in response to this momentum.
Thursday’s report follows Wednesday’s ADP survey, which showed private payrolls off by 33,000 in June, stoking earlier growth concerns.
Investors are also tracking Trump’s tax megabill, which passed the Senate Tuesday and returned to the House for a final vote.
Markets will close at 1 p.m. ET ahead of Friday’s Independence Day holiday. All three major U.S. averages are on track for weekly gains.
This article first appeared on GuruFocus.