NEW YORK (AP) — U.S. stocks are on track to hit yet another record on Friday. A long-awaited report Concerns about the job market have bolstered Wall Street expectations that interest rates will soon be eased.
The S&P 500 was up 0.3% in midday trading, on track to hit a new all-time high for a third straight day following Thursday’s trading hiatus for the Independence Day holiday. The Dow Jones Industrial Average was roughly flat as of 12:10 pm ET, and the Nasdaq Composite was up 0.7% to a record high.
In the bond market, the move was more decisive. Treasury yields fell following a mixed U.S. employment report. Companies hired more workers last month than economists expected, but the job gains still slowed from May’s. Moreover, the unemployment rate unexpectedly rose and the U.S. government said last month’s employment numbers were lower than previously indicated.
Overall, the data reinforced Wall Street’s belief that U.S. economic growth is slowing under the weight of high interest rates, which is exactly what investors want because the slowdown is Keeping inflation in check and, The Federal Reserve begins cutting interest rates It cut key interest rates from their highest levels in 20 years.
The question is whether the Fed can time its next move precisely: cut rates early enough to keep the slowdown from tipping into a recession, but not so far that inflation regains momentum and rises again.
The clearest takeaway from the jobs report for financial markets is that the Fed is maintaining its outlook for a cut in its key interest rate later this year, possibly as soon as September. The yield on the two-year Treasury note, which tracks closely with expectations of Fed action, fell to 4.61% from 4.71% late Wednesday.
The yield on the 10-year Treasury note, the backbone of the bond market, fell to 4.28% at Wednesday’s close, down from 4.36% and 4.70% in April, a notable move for the bond market and one that has supported stock prices.
Friday’s jobs report follows a wave of data pointing to a slowdown in the overall U.S. economy. Reports earlier this week showed business activity in both the U.S. services and manufacturing sectors contracted last month, weaker than economists had expected. And U.S. consumers are slowing. Low-income group It has shown how difficult it is to keep up with still-rising prices. credit card Swell.
“The big question for long-term investors is whether the recession fears come true,” said Brian Jacobsen, chief economist at Annex Wealth Management. “We think a recession is unlikely this year or next, but that doesn’t mean the market doesn’t fear one.”
On Wall Street, gold miner Newmont rose 1.9%, the biggest gainer in the S&P 500 index. The company benefited from a small increase in the price of gold. Gold typically benefits from lower interest rates because higher-yielding bonds can lure investors away from gold, which doesn’t provide any benefits to its holders.
Benefits for some High-impact stocks Stocks were supported despite declines across most of the S&P 500. Meta Platforms rose 4.5% and Apple added 1.7%.
Amazon is the parent company Saks Fifth Avenue Acquires Neiman Marcus Group The acquisition was valued at $2.65 billion, with Amazon taking a minority stake in the deal.
Companies closely tied to cryptocurrency trading bore the brunt of the losses on Wall Street, with bitcoin dropping from nearly $63,000 at the start of the week to below $56,000, bringing the cryptocurrency’s value back to where it was in February.
Coinbase Global fell 1.4% and Robinhood Markets dropped 1.7%.
In international stock markets, London’s FTSE 100 index fell 0.6 percent following British voters’ decision to oust the Conservative Party and install a new government in this week’s election. National election.
Britain has endured years of turmoil under Conservative governments that have left many voters pessimistic about the country’s future. Britain’s departure from the European Union was followed by the coronavirus pandemic and Russia’s invasion of Ukraine, which have hit the economy hard. Rising poverty and cuts to public services have led to discontent with a “broken Britain.”
Germany’s DAX rose 0.1% after the government reached the deal. 2025 Budget And a stimulus package for Europe’s largest economy was passed, ending months of wrangling that had threatened to topple Prime Minister Olaf Scholz’s center-left coalition.
The disagreements have led to the collapse of an already unpopular government and fuelled speculation that Germany could follow other European countries in calling early parliamentary elections. shift politically to the right.
In Asia, Japan’s Nikkei stock average topped the 41,000 yen mark early Friday, Record closing price on Thursday, but closed slightly lower that day.
__
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
