Major stock markets across the US closed a shortened trading week higher, after Thursday’s unexpectedly strong nonfarm payrolls report fuelled investor optimism.
US stocks climbed on Thursday, with the S&P 500 and Nasdaq Composite hitting fresh record highs. Both major indexes performed well after the latest jobs report exceeded expectations, fuelling optimism the US economy remains resilient to trade-related shocks.
The Dow Jones Industrial Average rose 344.11 points, or 0.77%, settling at 44,828.53. The S&P 500 increased by 0.83% to close at 6,279.35, while the Nasdaq advanced 1.02% to close at 20,601.10.
Both the S&P 500 and the Nasdaq Composite also ended the holiday-shortened week at record highs. US markets will be shut on 4 July as the country celebrates Independence Day. Both the New York Stock Exchange (NYSE) and the Nasdaq close for the day. There are also no regular trading sessions on any US index on Friday.
Strong jobs data send US stocks higher
In June, the Bureau of Labor Statistics reported that nonfarm payrolls increased by 147,000. This came in above the Dow Jones forecast for 110,000 and the upwardly revised 144,000 in May. Elsewhere, the unemployment rate also fell to 4.1%, beating economists’ projections of an increase to 4.3%.
Stocks received support from the US unemployment report, which raised hopes for continued solid US economic growth. September E-mini S&P futures rose 0.77% and September E-mini Nasdaq futures also climbed 0.95%.
The jobs data also caused a spike in Treasury yields, while reducing expectations for any immediate Federal Reserve (Fed) interest rate cuts. Expectations are growing that the central bank will hold rates steady at its meeting later this month.
Thursday’s report comes just one day after ADP released data showing that private payrolls decreased by 33,000 last month. This data raised fears that the economy was beginning to slow down due to the number of policy changes coming out of Washington. However, the nonfarm payrolls report data reduced these fears.
Trump’s spending and tax bill passes
Meanwhile, Donald Trump’s highly anticipated “big, beautiful bill” has been officially passed by the US Congress. The House passed the bill by 218 votes to 214 just a day ahead of Trump’s self-imposed 4 July deadline.
The president celebrated the passage of his domestic agenda bill, declaring it a “promise kept” while citing tax cuts and border security funding. He said “there could be no better birthday present for America” and claimed the bill as a “phenomenal victory” for the US.
At the heart of the legislation is an extension of Trump’s 2017 Tax Cuts and Jobs Act. This was previously due to expire at the end of 2025. The bill proposes to make the majority of tax reductions permanent and boost funding for border protection, military operations, and energy development.
To help cover these costs, the bill will cut funding for programs like Medicaid and SNAP. The Congressional Budget Office expects it would add $3.4 trillion to the deficit over the next decade and leave many people without health insurance. Leading Republicans and White House officials have rejected these claims.
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