Dow Hits New Record After Weak US Nonfarm Payrolls Data
US stock indexes strengthened on Thursday (July 2nd) after weaker-than-expected employment data dampened expectations that the Federal Reserve would tighten monetary policy. The Dow Jones Industrial Average even rose above 52,500 for the first time in history.
The S&P 500 gained 0.5%, while the Nasdaq 100 hovered near flat territory. The US economy added only 57,000 jobs in June, about half of market expectations. This data halted the previous strong job creation momentum.
These results reduce the scope for the Fed to raise interest rates again to address inflationary pressures this year. This situation supports expectations that there will be no further rate hikes and provides a boost to stocks sensitive to credit costs.
The economic sector continues to perform solidly, with shares of Visa and Eli Lilly moving near record levels. Meanwhile, AI-based hyperscaler stocks such as Oracle and Microsoft also managed to maintain their rebound and trade higher.
However, pressure remains on chipmaker stocks. Micron and Sandisk continued to hold their latest losses, limiting the Nasdaq 100's gains. Meanwhile, Meta shares fell 2% after the announcement of the sale of excess computing capacity sparked a rally in the previous session. US stock indexes rose in Thursday's trading after weaker-than-expected jobs data dampened expectations that the Federal Reserve would tighten monetary policy. The Dow Jones Industrial Average even rose above 52,500 for the first time in history.
Source: Newsmaker.id
