Investing.com — The S&P 500 closed at a record high on Friday as investors expected an interest rate cut from the Federal Reserve would come soon after the monthly jobs report for June suggested the labor market was cooling.
As of 15:43 ET (19:53 GMT), the was up 0.5% to a record 5,566.75, the was up 0.9% and the was up 0.2% (68 points).
Treasury yields plummet as employment data signals slowing labor market
Treasury yields came under pressure after the June employment report showed payrolls fell last month from 218,000 in May, but Macquarie said the strong payroll numbers were accompanied by a “significant downward revision” to payroll gains in May and April.The signs of a cooling in the labor market, plus a slowing rise in payroll growth to 4.1% from 4.0% in May, strengthen the case for a rate cut in September.
Macquarie added: “For now, our base case for a first rate cut remains December, but a cut sooner than that is increasingly likely, with a cut at the September meeting also likely.”
Traders now see a 70% chance of a rate cut in September, down from 60% last week.
The slowdown in the jobs market through June came after labor market indicators this week came in below expectations.
Tech stocks join giants as Meta hits new all-time high; Nvidia stumbles after downgrade, Tesla wins in China
Social media company Meta Platforms (NASDAQ:) led the rally in big tech companies, jumping more than 4% to a new record high early in the day. Alphabet (NASDAQ:), Microsoft (NASDAQ:) and Apple (NASDAQ:) also rose.
NVIDIA Corporation (NASDAQ:) fell 2%, missing out on the broader market rally after New Street Research cut its rating on the stock to “hold” from “buy” citing valuation concerns.
Tesla Inc. (NASDAQ:) shares rose 2% on reports that several state-owned enterprises in China’s financial capital Shanghai recently bought the electric vehicle maker’s best-selling Model Y as service cars. This follows reports that Tesla vehicles have been added to a purchase list for a local Chinese government.
Macy’s new acquisition spree picks up steam; China EV stocks hit by new EU tariffs
Macy’s (NYSE:) shares rose more than 9% after The Wall Street Journal reported that Arkhouse Management and Brigade Capital Management had raised their offer to buy the department store chain to about $6.9 billion.
Chinese EV stocks include Li Auto Inc (NASDAQ:), Nio Inc Class A ADR (NYSE:), Xpeng Inc NYSE: shares fell sharply after the European Union proposed higher tariffs on electric vehicle imports from China on Friday.
Crypto Stocks Recover as Bitcoin Trims Losses Amid Mt Gox Supply Wave Concerns
Cryptocurrency stocks including MicroStrategy Incorporated (NASDAQ: Coinbase Global Bitcoin Cash (NASDAQ:) and Riot Platforms (NASDAQ:) narrowed their losses after falling below $54,000 and closed at record lows. Meanwhile, Mt. Gox Exchange, which declared bankruptcy in 2014 after losing 950,000 Bitcoin, announced that it has begun paying creditors in both Bitcoin and Bitcoin Cash. Many fear that creditors will sell Bitcoin, further driving down the price. Bitcoin has risen astronomically since 2014 and is now worth significantly more than it was then.
(Peter Nurse and Amber Warrick contributed to this article.)
