Stocks End the Week at Fresh Records on Rate Cut Bets – US Market Wrap

The stock market closed the week at an all-time high, with traders ignoring signs of a slowdown in the world’s largest economy in favour of prospects for Federal Reserve rate cuts.

In a post-holiday session with low volume, the S&P 500 set its 34th record of the year. Equities rebounded after a series of twists and turns in the immediate aftermath of data showing that US hiring moderated as the unemployment rate reached its highest level since 2021. Treasury yields fell. Swaps fully projected two Fed rate cuts in 2024, beginning in November, with bets centred on a September cut.

Nonfarm payrolls increased by 206,000 in June, while job growth in the previous two months was revised downward by 111,000. The median forecast in a survey of economists was for a 190,000 increase. The unemployment rate increased to 4.1%, and average hourly earnings decreased.

The S&P 500 surpassed 5,565. The Nasdaq 100 gained 1%. Meta Platforms jumped nearly 6%. Macy’s stock soared following a news report about a sweetened buyout offer. Banks were hit, though JPMorgan and Citigroup are expected to start the industry’s earnings season next week on a positive note.

Treasury 10-year yields fell eight basis points, to 4.28%. The dollar experienced its first weekly drop in seven weeks. Bitcoin plummeted. The pound rose after Keir Starmer’s Labour party won a landslide election victory.