U.S. stocks rise as jobs data eases rate-hike concerns
The S&P 500 gained 0.3% and the Dow rose 0.9% after a jobs report showed slower hiring, reducing expectations of near-term Federal Reserve rate hikes.
Most U.S. equities advanced on Thursday following a jobs report that showed employers added 57,000 positions in June, well below economists’ forecast of 100,000. The weaker-than-expected payroll growth eased pressure on inflation and lowered market expectations that the Federal Reserve will raise interest rates soon.
The S&P 500 climbed 0.3%, putting it on track for its strongest weekly performance in nearly two months, while the Dow Jones Industrial Average was up 468 points, or 0.9%, as of 11 a.m. Eastern time. The Nasdaq composite slipped 0.2% after erasing an early gain.
Treasury yields fell after the data release, with the 10-year yield dropping to 4.47% and the two-year yield declining more sharply, prompting traders to assign an 82% probability that the Fed will hold rates steady at its upcoming meeting, up from 71% the day before, according to CME Group data.
"The labor market isn’t overheating," said Brian Jacobsen, chief economic strategist at Annex Wealth Management. He added that the figures could allow the Fed to wait through the summer for more inflation signals before deciding on further hikes.
Lower-rate expectations lifted riskier assets, sending Bitcoin up about 3% to roughly $61,500 and boosting shares of crypto-related firms such as Robinhood Markets (+6.4%), Coinbase Global (+5.2%) and Strategy (+8.8%). National Beverage’s LaCroix-maker also jumped 13.2% after announcing a special dividend.
Conversely, semiconductor stocks dragged the indexes lower amid concerns that AI-driven demand may not translate into sustained profit growth. Micron Technology fell 3.7% after a prior 10.6% plunge, while Applied Materials and Advanced Micro Devices dropped 6.6% and 3.8%, respectively.
Oil prices continued to decline, with Brent crude down 1.1% to $70.78 a barrel on hopes for a permanent resolution to the conflict in Iran.
Asian markets retreated, led by South Korea’s Kospi, which fell 7.9% on losses in chip stocks, marking its steepest slide since a 10% drop a week earlier. Tokyo and Shanghai indices also slipped, while European markets posted gains, highlighted by a 1.8% rise in France’s CAC 40.