4:12pm: Record-breaking session
A rally in tech stocks saw the Nasdaq and the S&P 500 close at new record highs on Friday.
June’s jobs report boosted rate cut expectations, with tech titans Apple, Amazon, Alphabet, and Meta adding 2.2%, 1.2%, 2.4%, and 5.9% respectively.
The Nasdaq gained 0.9% at 18,352 points while the S&P 500 added 0.5% at 5,567 points. The Dow Jones gained 0.2% at 39,375 points.
12:51pm: Jobs report in focus
US stocks were mixed in the early afternoon on Friday as traders digested the June jobs report.
The S&P 500 was on track for another record close, up 0.3% at 5,552 points, above Wednesday’s all-time high of 5,537.
The Nasdaq added 0.7% at 18,316 points while the Dow Jones shed 0.2% at 39,228 points.
"Slightly lower US average earnings, marginally higher US unemployment and a downward revision of last month's non-farm payrolls weren't enough to counterbalance the US economy adding more jobs than expected in June, paring back September rate cut expectations and leading to profit taking in US equities and an appreciating US dollar,” commented IG senior market analyst Axel Rudolph.
11:00am: June jobs report suggests cooling labor market
US stocks remained near all-time highs on Friday morning as investors evaluated the June jobs report's impact on Federal Reserve rate cut decisions.
By midmorning, the S&P 500 was nearing its record high at 5,544 points, while the Dow hovered near the flatline at 39,296 and the Nasdaq had gained 0.5% at 18,275.
Despite the US economy adding more jobs than expected, the unemployment rate increased to 4.1%, suggesting a cooling labor market, which may lead to a potential rate cut by the Fed in September.
“The June US labour market report painted a picture of a labour market that continues to gradually loosen, and normalize, with headline nonfarm payrolls growth moderating to a marginally better-than-forecast 206,000, as unemployment unexpectedly ticked higher to 4.1%, albeit on a firming in participation to 62.6%, making this less of a concern than it otherwise would be,” Pepperstone senior research strategist Michael Brown commented.
Brown said the policy implications of the jobs report are likely to be “relatively limited,” as the inflation side of the Fed’s dual mandate “continues to take precedence.”
8:36am: US stocks go volatile
Futures contracts have the Nasdaq 100 shooting up 64 points when hungover US traders spur into action this Friday.
The Dow Jones Industrial Average and the broader S&P 500, meanwhile, are showing heightened volatility but have the potential to add points too.
US employment data show released this morning showed a slightly higher-than-anticipated unemployment rate of 4.1% in June, edging out prior expectations of a flat 4%.
Average hourly earnings rose 3.9%, undershooting the 4.1% predicted by the market.
These macroeconomic results are unlikely to significantly impact US stock prices.