Investing.com– The S&P 500 closed at record highs Friday on bets that Federal Reserve rate rate cuts may soon be on the horizon after the June monthly jobs report pointing to cooling in the labor market.
At 15:43 ET (19:53 GMT), the gained 0.5% to a record high of 5,566.75 , the climbed 0.9%, the rose 0.2%, or 68 points.
Treasury yields nosedive after payrolls point to cooling labor market
Treasury yields came under pressure after the monthly jobs report for June showed the economy added last month, down from 218,000 in May, but the solid headline payrolls number was accompanied by “sizeable downward revisions,” Macquarie said, as jobs gains for the May and April were revised lower. Adding to signs of cooling labor market the rose to 4.1%, from 4.0% in May, slowed, strengthening the case for a September rate cut.
“While for now our base case for a first cut remains December, it has become increasingly likely that one may occur earlier than this, with a reduction at the September meeting a strong possibility,” Macquarie added.
Traders now see a 70% of a rate cut in September, down from 60% in the prior week, according to
This cooling in the jobs market through June also comes after a series of weaker-than-expected labor market readings this week.
Meta hits all time highs as tech adds to gians; Nvidia stumbles on downgrade, Tesla in China win
Meta Platforms Inc (NASDAQ:) led the rise in big tech as the social media company soared more than 4% to hit record highs earlier in the day, with Alphabet (NASDAQ:), Microsoft Corporation (NASDAQ:) and Apple (NASDAQ:) also higher.
NVIDIA Corporation (NASDAQ:), down 2%, failed to partake in the broader market rally after New Street Research downgraded the stock to hold from buy, citing concerns about valuations.
Tesla (NASDAQ:) stock added 2% on reports that several state-owned firms in China’s financial hub of Shanghai have recently purchased the EV manufacturer’s best-selling Model Y as service cars after Tesla cars reportedly were added to the list Chinese local government purchase list.
Macy’s in fresh deal fever; Chinese EV stocks hit by new EU tarrifs
Macy’s (NYSE:) stock rose over 9% after the Wall Street Journal reported that Arkhouse Management and Brigade Capital Management have raised their bid to buy the department store chain for about $6.9 billion.
Chinese EV stocks including Li Auto Inc (NASDAQ:), Nio Inc Class A ADR (NYSE:) and Xpeng Inc (NYSE:) were sharplly lower after the European Union proposed increased tariffs on electric vehicles imported from China commended on Friday.
Crypto stocks recover ground as Bitcoin pares some losses amid Mt. Gox supply wave fears
Cryptocurrency stocks including MicroStrategy Incorporated (NASDAQ:), Coinbase Global (NASDAQ:) and Riot Platforms (NASDAQ:) ended the day off their lowest level after eased losses following a dip below $54,000 even as Mt. Gox exchange, which declared bankruptcy in 2014 after falling victim to a heist that saw it lose 950,000 bitcoin, said it had started making payments in both bitcoin and bitcoin cash to creditors. Many are worried that creditors will sell their bitcoin — now valued at much than it was in 2014, given BTC’s astronomical rise since then — and force prices lower.
(Peter Nurse, Ambar Warrick contributed to this article.)
